People wait to shop at Costco
Wholesale stock is inching higher early Thursday, after the discounter reported another robust month of sales.
Late Wednesday, Costco (ticker: COST) said that April same-store sales rose 32.5%. Excluding the impact of exchange rates and gasoline, core same-store sales were up 24.2%, ahead of the consensus estimate, led by a 24.9% increase for U.S. locations. E-commerce climbed 17.3% last month.
Costco stock is up 1.13% to $376.72 in recent trading. The shares are flat year to date, although they’ve risen more than 23% in the latest 12 months.
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Investors have gotten used to big comparable-sales beats from the retailer throughout the last year, and they haven’t done much to move the stock recently. Costco shares have given up some of its pandemic gains. Yet year-over-year comparisons are getting more difficult, as Costco begins to lap the initial phases of lockdowns and pantry stocking from 2020. Some investors have wondered if its momentum can continue.
Still, there was a lot to like in the report. Traffic was up, and sales were strong across geographies and categories, especially non-food and other discretionary categories as consumers began shifting back toward previous shopping patterns.
On a two-year basis, which helps to smooth out pandemic spikes, same-store sales were up 23.7%, squeaking above March’s 23.4% gain. In addition, while digital sales slowed from nearly 55% in March, they too were up 105% on a two-year basis.
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