Costco Shares On Pace For All-Time High After 1Q Sales Hold Up
16 December 2023 - 6:24AM
Dow Jones News
By Ben Glickman
Shares of Costco Wholesale are on pace for their fifth all-time
high close in just more than a week after the company's
discretionary sales ticked up in the recently completed first
quarter.
The stock was up 4.4% to $658.46 in midday trading, reaching an
all-time intraday high and notching its largest percent increase
since January. Shares are up 44% this year.
Costco shares are on pace to reach a fifth record close since
Dec. 7.
The big-box retailer on Thursday said it logged a higher profit
in the period ended Nov. 26, as sales rose in line with analysts'
expectations.
Same-store sales, which strip out store openings and closures,
rose 3.8%, consistent with the prior quarter.
Costco's e-commerce sales rose in the quarter, bucking a trend
of sliding sales. The company saw improvements in its bigger-ticket
non-food items, also a reversal from previous results where Costco
saw weakness in discretionary sales.
The company declined to raise its membership fee, which was
highly anticipated by analysts. Chief Financial Officer Richard
Galanti says on a call with analysts that Costco is performing well
on renewal rates, sign-ups and loyalty, so the fee increase is not
needed.
The company also declared a $15 special dividend.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
December 15, 2023 14:09 ET (19:09 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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