Costco Wholesale Corp. (NASDAQ: COST) is trading down over 1% pre-market, yet the upper-end big box retailer posted some very strong numbers. The company reported earnings of $0.97 per share before $0.07 worth of charges. First Call estimates were for profit of $0.93. Its net sales were $22.6 billion excluding membership fees. Costco also posted September same store sales at +7% with a total sales gain of 10% for the month. It is still growing members as its membership fees rose to $473.7 million from $388.2 million in the same quarter in 2007.
As noted, shares are indicated slightly lower than its $57.80 close. In today’s economy, this report was solid.Its 52-week trading range is $57.05 to $75.23. Despite hard times,this stock should have already started pricing in much of the currentmarket woes and a slower consumer.
Jon C. Ogg
October 8, 2008