Categories Earnings, Retail

Costco Q1 Earnings Preview: Comp sales growth lifts expectations

Costco Wholesale Corporation (COST) is expected to post its first-quarter results on Thursday, December 13, after the market closes. Analysts expect earnings of $1.61 per share on revenue of $34.53 billion.

Posting stellar comp sales growth in November, it would be realistic to expect results to exceed expectations. However, there is a chance the top line might fall short. November comp sales rose 9.2% while it grew 8.6% in October, and 8.4% in September.

The changing trend in retail markets owing to better job prospects, climbing disposable income and positive sentiment.

From the data the retailer has reported so far in its monthly reports, net sales for the first quarter of fiscal 2019 is up 10.3% to $34.31 billion, on a comp sales growth of 8.8%. For the same period, United States comp sales grew 11%, while Comps for the quarter grew 8.8%, while the same for Canada and Other International locations rose 2.4% and 4% respectively.

Costco, as a major international player, is also focusing on e-commerce in the United States, Canada and Mexico, along with Korea, Taiwan and the UK.

In the previously reported quarter, higher sales—both in stores and online—pushed up Costco’s earnings in line with Wall Street estimates. But when the company said it detected a ‘material weakness’ in its internal control over financial reporting, it triggered a stock selloff after-market on the reporting day.

Costco’s growth strategies and quality of the merchandise have been its primary strength over the years. In the recent quarters, positive consumer sentiment and heavy discounts helped the company maintain its distinctive position in the highly competitive market.

 

 

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips

Most Popular

GameStop (GME) Earnings: Q1 loss narrows on 25% sales growth

Video game retailer GameStop Corp. (NYSE: GME), which has become the talk of the town after the unprecedented stock rally in recent weeks, reported a narrower loss for the first

Should you invest in Steel Dynamics (STLD) stock after 78% rally?

The steel industry managed to shrug off the pandemic blues earlier than expected as the recovery in industrial activity pushed up demand. With the vaccination drive and the government’s aggressive

Campbell Soup (CPB) Q3 Earnings: Key financials and quarterly highlights

Campbell Soup Company (NYSE: CPB) reported third-quarter 2021 earnings results today. Net sales decreased 11% year-over-year to $1.98 billion, as a result of lapping the demand surge at the onset

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top