Costco Wholesale stock gains on impressive September sales update
Source Toronto Star
Costco Wholesale (COST) shares bumped higher Thursday after it posted a massive September sales boost that bodes well for the bulk discount retailer's holiday season momentum.
Costco' said sales over the month of September, the first month of its fiscal first quarter, rose 15.8 per cent from last year to $19.5 billion (U.S.). Total comparable sales were up 14.3 per cent, Costco said, with core U.S. comps up 10 per cent.
"Food trends picked up meaningfully in September vs. August, which we suspect is also being helped by strong in-stocks and potentially supply challenges in the restaurant space," said Oppenheimer analyst Rupesh Parikh, who carries an 'outperform' rating with a $500 price target on the stock. "Costco continues to capitalize on strong food at home consumption trends, inflation tailwinds, and an ongoing robust consumer spending backdrop for more discretionary purchases."