Costco stock closes on worst day in nearly two years as quarterly sales fall
Still, at least seven brokerages raised their Costco price targets, with Jefferies putting the highest by $905 on the retailer’s second-quarter sales, which rose 6% to $58.44 billion but fell short of LSEG’s estimate of $59.16 billion. I couldn’t do it.
“Gasoline price deflation has had a negative impact on reported overall composite sales, with the global average selling price per gallon of gasoline down approximately 3.5% compared to last year,” said Richard Gallanti, Costco’s outgoing CFO. .
“The stock has had a very strong rally on earnings, so we’re seeing a lot of this with Costco,” said Telsey Advisory Group analyst Joseph. .” he said. Feldman said.
Over the past few quarters, Costco has seen demand for high-margin products such as appliances, home furnishings and electronics decline. U.S. retail sales fell the most in 10 months in January as customers remain cautious heading into 2024.
However, comparable sales, excluding fuel and currency fluctuations, rose 5.8%, driven by strong sales of home appliances and efforts by retailers to lower prices on some products to attract consumers looking to shop for bargains. “Their underlying same-store sales are very strong and traffic to their stores is very good, which is the biggest sign of their health as a retailer,” Feldman added. The brokerage believes retailers can attract customers in an uncertain environment and drive revenue growth through strong demand, membership fees and low prices.
According to LSEG data, Costco’s stock price closed at $725.56 and the median price target is $780.
