Why Is Everyone Talking About Costco?
Costco Wholesale (NASDAQ: COST) has been a great stock to own over the years. Its share price soared 165% over the past five years, crushing the S&P 500 (and its 56% return) by a wide margin. Managing a business that offers quality merchandise at discount prices in a customer-focused shopping environment is something that will never go out of style, and it has produced outstanding results for Costco.
More recently, however, this top retailer released some disappointing news that has shareholders talking. It could just be a temporary speed bump, or it could be a sign of worse things to come. Let's take a closer look at what's going on with Costco.
When Costco releases its quarterly figures, it generally doesn't offer a lot of surprises for shareholders. That's because the business also reports sales figures on a monthly basis, providing a valuable peek into its state of affairs. During the five-week period that ended April 2, the most recent data available, Costco posted $21.7 billion of net sales, up 0.5% year over year. On its own, this metric could be a cause for concern given that the company has reported stronger gains in the recent past.
Source Fool.com
