stock (COST) was up on Thursday morning, after sales of the discounter's comparable stores in June exceeded expectations.
The story back. Few retailers report comparable monthly sales, but Costco is not like most of its peers.
Shares climbed more than 33% so far until Wednesday's close, compared to 19.4% for the
S & P 500
and a gain of 3.6% for the
SPDR S & P Retail ETF
(XRT). In the last 12 months, Costco has grown by almost 27%. Analysts are still worried about the impact of the trade war, even on relatively isolated players like Costco, and valuation of equities. But that did not do much to derail Costco's growth, helped by strong sales, generous (and potentially growing) dividend distribution, store security and good results. His monthly reports are also correct and May has done little to rock the boat.
What's up. Late Wednesday, Costco said comparable store sales in June had risen 5.4% from one year to the next. Base sales, including gasoline and foreign exchange, were up 5.1% overall versus 4.3% last month and 5.3% in the US, ahead of consensus estimates of respective gain of 4.9% and 5%. Growth in core e-commerce was 20.8%, well ahead of the May results.
Look to the front. Monthly sales in comparable stores are not popular among other retailers, given the many factors that can cause fluctuations over such a short period. This is less of a problem for Costco, given its relatively stable nature due to its high retention rate of members and its value-based value. Although it did not produce better than expected results every month, the reports contributed to the increase in the stock overall.
Thursday, Stifel by Mark Astrachan Following the release of the latest report, its target price on Costco is $ 289, up from $ 261 after the last report. Goldman Sachs Costco's cover was also started on Thursday with a note of purchase.
Costco shares rose 0.4% to $ 272.44 shortly after opening on Thursday.
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