X
<

Costco's Comps Continued to Thrive in October despite Competition

PART:
1 2
Costco's Comps Continued to Thrive in October despite Competition PART 1 OF 2

Costco’s Comps Continued to Thrive in October despite Competition

Costco reports strong sales in October

Costco (COST) continued with its stellar sales performance in October. The company’s comparable-store sales (or comps) rose 7.5% for the four-week period ending on October 29, 2017. Comps rose 7.0% in the US (SPY), 9.0% in Canada, and 8.2% in other international locations. During the reported period, the company’s net sales registered a growth of 10.1% (year-over-year) to $10.0 billion. Moreover, the company’s sales from its e-commerce arm remained strong and increased 31.0% in October.

Notably, Costco’s monthly sales numbers reflect strong growth over the prior-year period as can be seen in the graph below. During October 2016, the company’s comparable store sales rose 2.0%, while net sales improved 4.0%.

Costco&#8217;s Comps Continued to Thrive in October despite Competition

Interested in AMZN? Don't miss the next report.

Receive e-mail alerts for new research on AMZN

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Excluding the impact of the movement in gasoline prices and currency rates, Costco’s October 2017 comps improved 5.6%. Comps rose 5.9% in the US, 2.8% in Canada, and 7.4% in other international locations.

What drives Costco’s sales?

Costco continues to generate industry-leading comps growth despite increased competition from Walmart (WMT), Amazon (AMZN), and Target (TGT). The company is witnessing higher average transactions and a rise in shopping frequency, which is driving its top-line growth. Meanwhile, Costco’s price investments, the opening of new warehouses, improved membership fee revenues, and increased penetration of executive membership supports its top-line growth rate.

Also, the company is focusing on strengthening its e-commerce business and has recently introduced two-day free delivery of non-perishable items. Plus, the company has expanded its same-day delivery for fresh groceries in partnership with Instacart. These consumer-friendly measures are likely to strengthen the company’s competitive positioning and are expected to drive the company’s sales in coming quarters.

X

Please select a profession that best describes you: