Costco Wholesale Corporation COST has reaffirmed its strong presence in the retail sector with decent sales results for November 2024. The company's commitment to offering quality goods at competitive prices resonates well with consumers. With a curated product selection, bulk purchasing power and an efficient supply chain, Costco remains a dominant player in the warehouse retail sector.
Decoding COST’s November Comps
COST’s comparable sales for November illustrate its market strength. For the four weeks ended Dec. 1, comparable sales in the United States grew 3.4%, while Canada and Other International markets saw increases of 3.7% and 1.3%, respectively. The total company comparable sales rose 3.1%. This follows consecutive increases of 5.1% and 6.7% in October and September, respectively.
When adjusting for the effects of gasoline prices and foreign exchange rates, Costco’s comparable sales paint an impressive picture. In the United States, comparable sales, excluding these factors, rose 4.3% in November, while Canada and Other International markets posted gains of 5.7% and 7.3%, respectively. The company’s total comparable sales, excluding these external factors, increased 4.9%.
However, Costco's e-commerce comparable sales fell by 3.1% or 2.5% when adjusted for gasoline prices and foreign exchange fluctuations. Management informed that e-commerce sales were hit by an estimated 15 percentage points due to Thanksgiving, Black Friday and Cyber Monday taking place a week later this year compared to last year. This hurt total and comparable sales by approximately one and one-half percent.
As a result, Costco's net sales for November increased 5.6%, reaching $21.87 billion, up from $20.71 billion in the same period last year. This follows a sales improvement of 7.2% and 9% reported in October and September, reflecting a strong and consistent sales performance in the past few months.
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Costco’s Consistent Growth Keeps Investors Optimistic
Costco’s resilient business model, centered around a membership-based structure, continues to be a major growth driver. The company’s high membership renewal rates, coupled with its efficient supply chain management and bulk purchasing power, ensure competitive pricing and customer loyalty.
Shares of this Zacks Rank #3 (Hold) company have advanced 17.6% in the past six months compared with the Retail – Discount Stores industry’s rise of 9.4%.
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Ingredion Incorporated INGR manufactures and sells sweeteners, starches, nutrition ingredients and biomaterial solutions derived from wet milling and processing corn and other starch-based materials. The company currently sports a Zacks Rank #1 (Strong Buy). INGR has a trailing four-quarter earnings surprise of 9.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ingredion’s current financial year’s earnings indicates growth of 12.5% from the year-ago reported number.
Freshpet Inc. FRPT manufactures, distributes and markets natural fresh meals and treats for dogs and cats. It currently carries a Zacks Rank #2 (Buy). FRPT has a trailing four-quarter earnings surprise of 144.5%, on average.
The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings implies growth of 27.3% and 228.6%, respectively, from the prior-year reported levels.
US Foods Holding USFD, one of America’s great food companies and a leading foodservice distributor, currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings suggests growth of 6.4% and 18.6%, respectively, from the prior-year reported levels.
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Today, See These 5 Potential Home Runs >>Costco Wholesale Corporation (COST) : Free Stock Analysis Report
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US Foods Holding Corp. (USFD) : Free Stock Analysis Report
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