Costco Wholesale Corporation (
COST) recently posted October net sales of $5.68 billion, a 7% increase over last year's $5.30 billion. Comparable sales spiked 5% year-over-year.
Company Description
Costco Wholesale Corporation operates an international chain of membership warehouses, mainly under the "Costco Wholesale" name. The company currently operates 562 warehouses, including 409 in the United States and Puerto Rico, 77 in Canada, 21 in the United Kingdom, 7 in Korea, 6 in Taiwan, 9 in Japan, 32 in Mexico and 1 in Australia. Costco also operates Costco Online at www.costco.com and at www.costco.ca in Canada. The company plans to open an additional five new warehouses (including the relocation of one warehouse to a larger and better-located facility), prior to the end of calendar 2009.
Recent Events
In recent news, it was reported that Costco will stop carrying Coke products due to a dispute over prices as the retail giant is trying to win over customers with low prices, while Coca-Cola Co. (KO) is working hard to maintain profits amid a recessionary environment.
Solid Sales
Costco recently posted October net sales of $5.68 billion, a 7% increase over last year's $5.30 billion. Comparable sales spiked 5% year-over-year.
Competitive Income
In early October, the company declared a quarterly dividend of 18 cents per share, which was paid out on November 6. The dividend translates into an industry-leading yield of 1.2%.
Bullish Forecasts
Analysts polled by Zacks are upbeat on earnings. For the fiscal year ending August 2010, the Zacks Consensus Estimate of $2.87 per share was increased from $2.71 over the past 60 days. For the following year, Zacks analysts are calling for $3.22 per share, up from the 2 months-ago level of $3.00.
Zacks Investment Research
-