Costco Wholesale, the big-box retailer, is expected to release its fiscal first-quarter results after the market closes on Thursday. Here are the key details you need to know:
Net Income
According to a consensus of nine analysts surveyed by FactSet, Costco is projected to report a profit of $1.52 billion for the first quarter, compared to $1.36 billion in the previous year.
Revenue
The company's revenue for the fiscal first quarter is estimated to increase to $57.79 billion from $54.44 billion a year ago, according to 25 analysts surveyed by FactSet.
Adjusted Earnings
Excluding certain one-time items, Costco is expected to announce a profit of $3.41 per share for the quarter ending on November 26. This forecast is based on a consensus of 29 analysts surveyed by FactSet.
Stock Performance
During the quarter, Costco's stock experienced an 8.7% rise and was recently trading at $636 per share.
What to Watch
Here are a few key things to watch for in Costco's upcoming report:
Membership Fee Increase: Analysts believe that Costco is due for a membership fee hike since it has not raised its prices since 2017. Investors are eager to learn if the company plans to increase fees in the next fiscal year or if there are any signs indicating when an increase might occur.
Effect of Deflation: Walmart CEO Doug McMillon warned about potential deflation in the coming months. As both Walmart and Costco sell a variety of products, including food, clothing, and hard goods, the latter's upcoming report may provide insights into how prices are performing in different categories. Price deflation may impact Costco's margins, but it could also boost consumer confidence and encourage spending on discretionary items.
Online Sales Performance: In November, Costco reported that its online comparable sales grew by 9.9% during the four weeks ending on November 20 compared to the previous year. Investors will likely be looking for further information on the company's online performance, particularly during the early stages of the holiday shopping season.
