Costco Earnings Beat Expectations But Wage Inflation Clouds Outlook

Costco earnings beat expectations but wage inflation remains an issue. Gross margins improved but labor costs rose nearly 9%.
Sales were weaker than expected due to pullback in discretionary purchases and big ticket items. Average ticket size fell nearly 4%.
Despite economic headwinds, Costco remains relatively recession-proof due to value proposition. Shares up 23% this year.
Membership fee revenue rose to $1.51 billion, exceeding estimates. Total membership households up nearly 8% year-over-year.
Costco has not raised membership fees since 2017 but expects to do so by end of 2022. Typical increases are $5-$10 every 5-7 years.

yahoo.com

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8/30/2023

Stocks making the biggest moves after hours: Salesforce, Okta, CrowdStrike, Five Below and more

Salesforce, CrowdStrike, Okta, Five Below, and Pure Storage beat second-quarter expectations, resulting in stock price increases, while Victoria's Secret and Chewy fell short of expectations and experienced stock price declines, and Costco Wholesale reported positive net sales for August.

9/25/2023

Costco's Value Proposition Drives Sales Growth Amid Inflation Worries

Wholesale retail giant Costco is expected to win over consumers with its cheap gas prices as it reports quarterly results, with same-store sales growth expected to rise and e-commerce sales predicted to increase by 5%.

9/26/2023

Costco Earnings Beat Estimates as Shoppers Withstand Inflation

Costco's fourth quarter results surpassed expectations with higher earnings per share and revenue, despite challenges such as higher gas prices and student loan repayments, and the company is well-positioned to gain market share in the current environment, according to Jefferies analyst Corey Tarlowe.

9/27/2023

Costco Earnings Beat Expectations Despite Holding Off on Fee Hike

Costco Wholesale's earnings report receives positive feedback from Wall Street analysts despite initial investor concerns about the lack of a membership fee increase.

9/27/2023

Cramer Praises 'Beautiful Quarter' for Costco as Shares Rise on Earnings Beat

Costco's business is strong with decreasing inflation and minimal inventory losses, leading to a rise in its stock's year-to-date gains and increased price targets from Wall Street firms.

Topics

Posted 9/27/2023, 6:12:29 PM

Costco Earnings Beat Expectations But Wage Inflation Clouds Outlook

Costco earnings beat expectations but wage inflation remains an issue. Gross margins improved but labor costs rose nearly 9%.
Sales were weaker than expected due to pullback in discretionary purchases and big ticket items. Average ticket size fell nearly 4%.
Despite economic headwinds, Costco remains relatively recession-proof due to value proposition. Shares up 23% this year.
Membership fee revenue rose to $1.51 billion, exceeding estimates. Total membership households up nearly 8% year-over-year.
Costco has not raised membership fees since 2017 but expects to do so by end of 2022. Typical increases are $5-$10 every 5-7 years.

yahoo.com

Relevant topic timeline:

8/30/2023

Stocks making the biggest moves after hours: Salesforce, Okta, CrowdStrike, Five Below and more

9/25/2023

Costco's Value Proposition Drives Sales Growth Amid Inflation Worries

9/26/2023

Costco Earnings Beat Estimates as Shoppers Withstand Inflation

9/27/2023

Costco Earnings Beat Expectations Despite Holding Off on Fee Hike

Costco Wholesale's earnings report receives positive feedback from Wall Street analysts despite initial investor concerns about the lack of a membership fee increase.

9/27/2023

Cramer Praises 'Beautiful Quarter' for Costco as Shares Rise on Earnings Beat

Costco's business is strong with decreasing inflation and minimal inventory losses, leading to a rise in its stock's year-to-date gains and increased price targets from Wall Street firms.