Earnings Results: Costco stock falls after hours as retailer’s earnings disappoint, online sales fall

by | Dec 8, 2022 | Stock Market

Costco Wholesale Corp. stock fell less than 1% in the extended session Thursday after the retailer missed Wall Street expectations for its fiscal first quarter and online sales dropped. Costco
COST,
-0.11%
earned $1.36 billion, or $3.07 a share, in the quarter, compared with $1.32 billion, or $2.98 a share, in the year-ago period.

Revenue rose 8% to $54.44, from $50.36 billion a year ago, Costco said. Same-store sales rose 6.6%, but e-commerce sales declined 3.7% in the quarter. Analysts polled by FactSet expected Costco to earn $3.12 a share, on revenue of $58.36 billion. Those analysts saw same-store sales rising 6.4%. Costco reported quarterly earnings as analysts raise questions about how it might boost margin and profit, following weaker sales trends last month. DA Davidson analyst Michael Baker, in a note Monday, said that with Costco’s monthly sales out of the way, the investor focus for the retailer’s results would be on gross margins. He also said he’d be looking for more detail on gas prices’ impact on profit, and the broader state of same-store sales, as inflation shows some signs of easing. Baker also said the company faced questions about a possible membership-fee hike. “However, with consumers struggling through higher costs across the board, (Costco) may be reluctant to add to that pressure in the near term,” he said. Costco, in the early days of the pandemic, recorded big gains amid a surge in panic buying. But the chai …

Article Attribution | Read More at Article Source

Share This