🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Costco March sales 'were pure gold' - Wells Fargo

Published 11/04/2024, 18:52
© Reuters.

According to Wells Fargo, Costco's (NASDAQ:COST) March sales were "pure gold," and the company's underlying momentum was strong.

Costco reported total company comp growth of 7.5% that beat the consensus of 6.3%. Its results included a 0.5% Easter shift benefit. Total company traffic accelerated sequentially to 7.2%, while the average ticket increased 0.5%.

"COST's non-foods category posted impressive LDD growth, up from an MSD Feb. gain. eComm grew a robust 28.0% (ex-fuel/FX), the biggest increase since March '21," said Wells Fargo.

Analysts added: "We believe COST was helped considerably by its recent expansion into very low profit precious metals (est. at $200-300m in March), which we estimate accounted for over 2/3 of eComm growth, 400-500bps to gen merch growth, and 150bps+ of the US comp gain."

Wells Fargo believes Costco's run as one of the highest-quality consumer companies will continue, as evidenced by its strong results. They expect it to continue to take share as it leans on its value offering and has an eventual catalyst in MFI.

However, at its current valuation, they view the risk/reward as balanced and maintain an Equal Weight rating on the stock.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.