Costco Wholesale Corporation (Costco)
I. Investment Highlights
Company Profile
Costco is a low cost/discount retailer that operates through 417 warehouse style retail stores, and through Costco.com. Access to Costco Warehouses is restricted to members who pay a small annual fee for access. Started primarily as a small business supply company, Costco’s inventory focus has grown to include high-end consumer goods including home electronics and luxury items. Costco has succeeded by focusing on the demands a specific customer group while continues to provided for other profitable customers.
Growth Dynamics
Costco’s quarterly sales growth is in tune with the rest of the industry at ~ 10%. This is a very sustainable growth rate and while not stellar, when combined with the lowest labor costs in the industry, results in an excellent return.
Revenue Est. Current Quarter Next Quarter Current Year Next Year
Avg. Estimate 12.78B 13.85B 58.7B 63.95B
No. of An. 11 11 13 11
Low Estimate 12.46B 13.39B 57.17B 61.13B
High Estimate 13.07B 14.07B 60.53B 66.28B
Year Ago Sales 11.58B 12.66B N/A 58.74B
Sales Growth 10.4% 9.4% N/A 8.9%
Source: finance.yahoo.com
Since a great deal of Costco’s growth comes fro ...