Costco (COST) Stock Reaffirmed Outperform After Strong June Sales and Warehouse Expansion
The addition of 25 new warehouses, which represented a 2.8% unit expansion, and comparative sales growth of 5.8% were the main drivers behind the sales growth. After two months of sequentially weaker performance, June comparative sales showed a reacceleration, primarily as a result of foreign exchange tailwinds that had been putting pressure on results for 14 months.
US adjusted comparable sales increased 5.5%, representing a two-year stack of 11.8% that was in line with the trailing twelve-month average of 11.7%. Adjusted comparable sales increased 7.9% for Canadian operations and 8.2% for other international markets.
A membership-based warehouse club, Costco Wholesale Corporation (NASDAQ:COST) offers bulk discounts on an array of products, including food, electronics, and household products.
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