Costco stocks rose 3% after importing Q3
Costco stocks increased by about 14% year -on -year.
Costco (NASDAQ: COST) Big BOX retailer reported 3Q income in the third quarter, and Friday 3%of Friday was $ 1,040 per share, $ 1,040 per share, $ 1,040 per share.
Costco surpassed imports and revenue estimates and faced tariffs.
The company’s sales increased by $ 63.3 billion, with a 8%increase in sales.
Net profit increased to $ 1.9 billion or $ 4.28 per share, up 13.1% in quarter. This best recorded the estimate of the $ 4.24 consensus analyst per share.
Net revenue increased to about $ 6.2 billion, while membership fees rose 11% to $ 12.4 billion.
Big Box Store also had similar store sales as it soared 5.7%. Similar store sales in the United States increased 6.6% year -on -year, while 2.9% in Canada and 3.2% in other international markets. Except for gas sales, similar store sales increased 8%. Digital or e -commerce, similar sales increased 15% in quarter.
Costco saw a 7% increase in paid members to 79.6 million in quarter, and the global member renewal rate was 90.2%. In addition, 24 new stores will be opened in the fiscal year and 15 have already been opened. It will also relocate three more stores.
Limit of tariff impact
Costco has limited the impact of tariffs on imports in several ways, Ron Bakris CEO explained the import phone.
Bakris said, “We support the promise of long -term suppliers while maintaining agility as the tariffs develop, for example, in the third quarter, we have made many products that are supplied in countries with great tariffs in the non -US market.” We supplied additional items. “
Costco imports about one -third from the United States to the United States, resulting in about 8%of China, which can be less exposed to tariffs than other large retailers. Most of the income is non -food.
As the inflation of non -food items increased, a $ 130 million LIFO fee was imposed, which affected imports and total margins. Costco CFO Gary Millerchip said, “At the beginning of the fiscal year, the LIFO claims are calculated compared to the net landing inventory cost and net landing inventory at the end of the current quarter.
MILLERCHIP added that if the current inflation ratio remains the same in the fiscal year, COSTCO will impose a LIFO fee of $ 40 million to $ 50 million in the fourth quarter.
Costco has received several price targets after posting Q3 revenue, including Morgan Stanley’s $ 75 per share and $ 47 per share of Truist. The average price target for Costco shares is $ 1,088 per share, an increase of 7% from the current price.
Costco stocks increased 14%, but P/E is 58, so monitor it.
