Costco Wholesale Corporation
) dropped marginally by 0.4% following comparable-store sales
results for July, the four weeks ended Aug 3, 2014, that fell short
of analysts' expectations. The warehouse retailer however delivered
comparable-store sales growth of 5%, reflecting an increase of 5%
in the U.S. and 6% at international locations.
Excluding the effect of deflation in gasoline prices and impact
of foreign currency fluctuations, Costco's comparable-store sales
for July rose 6%, reflecting comparable sales growth of 5% at its
U.S. locations and 7% at international outlets.
Most of the retailers benefited during the month under review
due to increasing consumer confidence, improving job prospects and
aggressive promotional strategies. Retailers such as Rite Aid
), Walgreen Co. (
) and L Brands, Inc. (
) saw their comparable-store sales rise 4.6%, 5.2% and 6%,
respectively, during July.
Coming to Costco, comparable-store sales for the 48-week period
increased 4%, buoyed by 5% growth in the U.S. and 3% increase at
international locations. Excluding the effect of gasoline prices
and foreign currency fluctuations, Costco's comparable-store sales
for the period jumped 6%. Comps increased 5% in the U.S. and 7% at
Total net sales for July grew 9% to $8.55 billion from $7.87
billion in the year-ago period. Costco's net sales for the 48-week
period increased 7% to $101.43 billion from $94.91 billion in the
The company currently operates 660 warehouses, 466 in the United
States and Puerto Rico, 88 in Canada, 33 in Mexico, 25 in the
United Kingdom, 20 in Japan, 11 in Korea, 10 in Taiwan, 6 in
Australia and 1 in Spain. Further, the company plans to open 3 more
warehouses before the end of fiscal 2014.
Currently, Costco carries a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
RITE AID CORP (RAD): Free Stock Analysis Report
COSTCO WHOLE CP (COST): Free Stock Analysis
WALGREEN CO (WAG): Free Stock Analysis Report
L BRANDS INC (LB): Free Stock Analysis Report
To read this article on Zacks.com click here.