Costco’s (COST) third quarter earnings topped Wall Street estimates as consumers continue to seek value. TD Cowen Senior Research Analyst Oliver Chen joins Morning Brief to break down the retail giant’s earnings and what it signals about consumer spending.
Same-store sales increased the most in five quarters, which Chen says indicates great momentum as Costco continues to provide value. He also notes that Costco has also seen development in its non-food products, which highlights consumer spending outside of groceries and other essentials — a feat yet to be seen at other retailers like Target (TGT).
Chen explains that while Costco’s valuation may be expensive, “It’s worth it.” He points to the membership model, which generates about half of the retailer’s profitability, as a solid source of development. He also notes that Costco is one of the top jewelry and diamond sellers. He adds, “This firm really surprises and delights. And when you go into a Costco, as you know, you find things you never knew you needed or wanted. And that’s part of the magic of Costco.”
#youtube #COSTCO #news
About Yahoo money management:
Yahoo money management provides free stock ticker data, up-to-date news, investment mix management resources, comprehensive industry data, advanced tools, and more information to help you manage your financial life.
– Get the latest news and data at money management.yahoo.com
– Download the Yahoo money management app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)
– Follow Yahoo money management on social:
X: http://twitter.com/YahooFinance
Instagram: https://www.instagram.com/yahoofinance/?hl=en
TikTok: https://www.tiktok.com/@yahoofinance?lang=en
Facebook: https://www.facebook.com/yahoofinance/
LinkedIn: https://www.linkedin.com/firm/yahoo-money management
Disclaimer:
If you own the YouTube channel related to this video and do not want it to be featured here, you can contact us through our contact page. We will gladly remove it without questioning your reasons.