Costco's June Sales Rose 10.6%, but the Stock Fell 4%. Here's What Spooked Investors.
Yahoo Finance ·
Membership-based wholesale retailer Costco Wholesale ( COST 4.23% ) reported sales for the retail month of June after the market closed on Wednesday, and at a glance, the numbers looked strong. Net sales rose 10.6% year over year to about $29.2 billion for the five weeks ended July 5. U.S. comparable sales, a measure of sales at warehouses open at least a year, climbed 10.6%. And digitally enabled comparable sales jumped nearly 21%. The company also declared its regular quarterly dividend of $1.47 per share. And yet the stock fell about 4% as of this writing, slipping to about $913 and landing roughly 17% below its 52-week high. So why would investors sell a report that, on its face, looks like more of the steady growth Costco is known for? The answer is in the fine print. Strip out gasoline prices and foreign exchange, two things Costco doesn't really control and that can flatter or dent any single month, and June looks a good deal more ordinary. On that adjusted basis, U.S. comparable sales rose 7.6% year over year, and total company comparable sales rose 7%.
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