Costco Wholesale Stock wins on impressive September sales update
Wholesale Costco (COST) – Get the Costco Wholesale Corporation report shares rose Thursday after posting a massive sales increase in September, which bodes well for the bulk discount retailer’s holiday season momentum.
Costco ‘said sales in September, the first month of its fiscal first quarter, were up 15.8% from a year ago to $ 19.5 billion. Total comparable sales were up 14.3%, said Costco, leading US compositions up 10%.
“Food trends increased significantly in September compared to August, which we believe is also helped by strong stocks and potentially food supply issues in the food court,” said Rupesh Parikh, analyst at Oppenheimer. , which obtained an “outperformance” rating with an amount of $ 500. share price target. “Costco continues to capitalize on strong trends in home food consumption, favorable inflation winds and a still strong consumer spending environment for more discretionary shopping.”
Shares of Costco rose 2.1% early in Thursday to change hands to $ 455.68 each, a move that would take their year-to-date gain to around 22%.
At the end of last month, Costco beat Wall Street’s forecast for its fourth quarter profits, but said it would start limiting purchases of certain items due to supply chain issues.
Costco’s August quarter sales rose 17% from a year ago to $ 62.68 billion, while profits rose 23.7% to $ 3.76 per share.
Looking at the final months of the calendar year, however, Costco said it needs to plan for product delays related to both COVID and supply chain disruptions that lengthen delivery times, as well as to the global semiconductor shortage.
Costco’s biggest rival, Walmart (WMT) – Get the report from Walmart Inc., is also taking steps to mitigate supply chain disruptions by installing a new COO for its U.S. operations as the holiday season approaches.
Chris Nicholas, a senior finance executive who worked for British grocery giant Tesco plc, replaced Dacona Smith as chief operating officer in the United States, Bloomberg News reported on Tuesday, citing a note from the company.
The change comes as the world’s largest retailer kicks off its latest holiday campaign amid perhaps the most disrupted supply chains in decades, with shortages and delays expected to affect imports and raise prices.
Recent data suggests that the base price of shipping a standard 40-foot equivalent container from Shanghai to New York has quintupled from pre-pandemic levels to $ 15,000, causing supply shortages of everything from clothes and shoes to furniture and appliances.
The average wait time for expedition ships outside the Port of Los Angeles is now around 8 days, with a backlog of 54 ships outside of Long Beach.