For the third quarter, the Issaquah, Washington-based retailer reported a 7% growth in earnings to $1.70 per share, exceeding estimates, helped by robust comparable store sales and double-digit revenue growth.
Unique growth strategies and quality of the merchandise being offered put Costco at an advantageous position in the sector
The highlight of the quarter was a 45% jump in e-commerce sales, a clear indication that the company is adequately equipped to compete with retail giants like Amazon (AMZN) and Walmart (WMT). Recently, it launched an online grocery unit in Ontario, Canada, as part of its efforts to expand global market share.
Costco has been receiving some encouraging reviews from analysts, who are particularly impressed by its strong fundamentals. For the company, low prices continue to be the key to sustaining membership growth, and it cannot afford to lose the existing customers to the e-commerce rivals. In any case, online platforms will find it difficult to match the unique customer experience Costco offers.
RELATED: Costco stock hits a yearly high
Costco’s competitor, BJ’s Wholesale on Tuesday reported better than expected earnings for the second quarter, on an adjusted basis, supported by a 4% increase in sales.
Costco shares have been gaining steadily for several years now, rising about 45% in the past twelve months alone. After hitting an all-time high last week, the stock retreated slightly and closed the previous trading session lower.
RELATED: Costco Q3 earnings beat estimates
