If You Don't Own Costco Stock, You're Missing Out
With inflation continuing to be a thorn in most retailers' sides, you might be surprised to learn that one retailer is posting accelerating growth. Costco Wholesale (NASDAQ: COST) has been posting simply outstanding performance since the pandemic started. Instead of beginning to ebb like rivals Walmart and Target, Costco sales have been increasing at a faster rate. It's demonstrating once again that when times are tough, it performs best.
Prior to the pandemic, Costco was chugging along with mid to high single-digit year-over-year sales growth in a typical quarter. That shot up to double digits when the pandemic started and there was a scramble for essentials. In the aftermath -- as many retailers deal with supply chain problems, people cutting back on spending, and excess inventory -- Costco's sales growth is getting stronger.
That was apparent in the third fiscal quarter (ended May 8), right around the time other retailers were posting sharply decelerating sales. Costco bucked that trend with a 16% sales increase from the prior-year period to $51 billion, including a 17% increase in U.S. comparative-store sales (or comps). Earnings increased as well, with earnings per share (EPS) growing from $2.75 last year to $3.05 this year, although margins were slightly down.
Source Fool.com
