Costco Wholesale Corporation
) rose marginally by 0.1% following comparable-store sales results
for June, the five weeks ended Jul 6, 2014, that bettered analysts'
expectations. The warehouse retailer delivered comparable-store
sales growth of 6%, reflecting an increase of 6% in the U.S. and 7%
at international locations.
Excluding the effect of inflation in gasoline prices and impact
of foreign currency fluctuations, Costco's comparable-store sales
for June rose 6%, reflecting comparable sales growth of 6% at its
U.S. locations and 8% at international outlets.
Most of the retailers benefited during the month under review,
as favorable weather conditions, aggressive promotional strategies
and improving job prospects were enough to lure consumers.
Retailers such as
Rite Aid Corp.
) saw their comparable-store sales increasing 3.9%, 3.1% and 7.5%,
respectively, during June.
Coming to Costco, comparable-store sales for the 44-week period,
increased 4%, buoyed by 5% growth at the U.S. and 2% 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% at the U.S. and 7% at
Total net sales for June grew 10% to $10.89 billion from $9.91
billion in the year-ago period. Costco's net sales for the 44-week
period increased 7% to $92.88 billion from $87.04 billion in the
The company currently operates 658 warehouses, 465 in the United
States and Puerto Rico, 87 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 5 more
warehouses before the end of fiscal 2014.
Currently, Costco carries a Zacks Rank #3 (Hold).
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