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Costco Continues with its Positive Comparable Sales Trend

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After reporting flat comparable-store sales (comps) in August, Costco Wholesale CorporationCOST has continued to post positive comps so far. Comps for the four-week period ended Jan 29, 2017 increased 7%, following an increase of 3% in December, 1% in November, 2% in October and 1% in September. The company generated net sales of $9.08 billion in January, up 9% year over year. Notably, net sales increased 5% in December, 3% in November, 4% in October and 3% September.

We noted that shares of Costco have climbed roughly 8% since Oct 5, 2016, when the company reported September sales results. In fact, in the past three months, the stock has advanced 12.1% and comfortably outperformed the Zacks categorized Retail-Discount & Variety industry that increased 6.7% in the same time frame.

Comps for January reflect an increase of 6%, 11% and 4% at the U.S., Canadian and Other International locations, respectively. Excluding the impact of foreign currency fluctuations and gasoline prices, Costco's comps for the month under review rose 5%. The company recorded comps increase of 5%, 1% and 8% across its U.S., Canadian and Other International locations, respectively.

For the 22-week period ended Jan 29, 2017, Costco reported 2% jump in comps, reflecting an increase of 2% and 6% at its U.S. and Canadian locations, respectively, and flat comps at Other International locations. Net sales for the period came in at $52.26 billion, an increase of 5% from year-ago period.

Costco currently operates 725 warehouses, which include 506 in the U.S. and Puerto Rico, 94 in Canada, 36 in Mexico, 28 in U.K., 25 in Japan, 13 in Korea, 13 in Taiwan, eight in Australia and two in Spain.

Zacks Rank

Costco currently carries a Zacks Rank #3 (Hold). Investors interested in the retail space may consider some better-ranked stocks such as Big 5 Sporting Goods Corporation BGFV , The Children's Place, Inc. PLCE and Tailored Brands, Inc. TLRD , all flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Big 5 Sporting Goods delivered an average positive earnings surprise of 4.8% in the trailing four quarters and has a long-term earnings growth rate of 12%.

The Children's Place delivered an average positive earnings surprise of 36.3% in the trailing four quarters and has a long-term earnings growth rate of 10.3%.

Tailored Brands delivered an average positive earnings surprise of 8.4% in the trailing four quarters and has a long-term earnings growth rate of 17.5%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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