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Costco in reverse despite blazing sales report

Published 01/04/2018, 10:27 AM
© Reuters.  Costco in reverse despite blazing sales report
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  • It's hard to see what Costco (NASDAQ:COST) did wrong in December after the retailer walloped estimates with a same-store sales increase of 11.5% to sail past the consensus estimate of 8.1%.
  • The impressive monthly sales report was underpinned by a 6.4% rise in U.S. traffic and 33% jump in digital sales. Those two marks outpace the bulk of the retail sector.
  • Gordon Haskett analyst Chuck Grom says the monthly report from Costco is a "testament to the model, which is generating strong comps from both new and mature units."
  • Shares of Costco are down 1.08% on the day as the retailer's string of positive sales reports (August to December: +7%, +9%, +8%, +11%, +12%) brings about a bit of complacency with investors.
  • Previously: Costco reports strong comp sales (ex-gas and F/X) in December (Jan. 4)
  • Now read: Costco's Evolving Plan For Long-Term Growth


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