From its $4.99 rotisserie chickens to its $1.50 hot dog combos, Costco has been a longtime favorite of price-conscious shoppers.
Amid rising food prices, inflation-pinched consumers are looking to make their money stretch further, much to Costco’s advantage. The wholesaler ended the fiscal second quarter of 2023 with 123 million cardholders, up about 7% compared to a year ago, Richard Galanti, Costco’s chief financial officer, said during the March 2 earnings call.
The retailer reported revenue of $55.27 billion for its fiscal second-quarter of 2023, missing analysts’ prediction of $55.54 billion, according to Refinitiv consensus estimates. However, the company reported earnings per share (EPS) of $3.30, which surpassed the $3.21 analysts expected.
While the retailer isn’t planning to raise its annual membership fees for now, shoppers may need to prepare to pay a bit more for membership in the future. When asked about a potential fee hike, Galanti said “it’s a question of when, not if.”
It’s been nearly six years since Costco increased its membership fees. In June 2017, Costco raised the price of its Standard Gold Star membership from $55 to $60, and increased the price of its Executive membership from $110 to $120.
As of 2022, Costco is the third-largest retailer in the U.S. by sales revenue, according to the National Retail Federation’s “Top 100 Retailers 2022 List.”
What this means for investors
Costco posted its fiscal second-quarter results after the bell on March 2. The following day, shares declined slightly by 2.15% and ended the session trading at $475.26 per share.
Here’s how much money you’d have as of March 3 if you had invested $1,000 into the company one, five and 10 years ago.
If you had invested $1,000 into Costco a year ago, your investment would be worth about $898 as of March 3, according to CNBC’s calculations.
If you had invested $1,000 into Costco five years ago, your investment would have more than doubled to $2,639 as of March 3, according to CNBC’s calculations.
And if you had put $1,000 into Costco a decade ago, it would have swelled to $5,124 as of March 3, according to CNBC’s calculations.
Investors should do their research
If you’re interested in investing in Costco, Walmart or another company, remember: The stock market is unpredictable, and you shouldn’t use a stock’s past performance to predict how well it will do in the future.
A passive investment strategy tends to make sense for most investors, rather than selecting individual stocks. Experts typically recommend investing in low-cost index funds, which can give your portfolio exposure to a broad array of companies.
Investing in the S&P 500 can be a great place to start, for example. It’s a market index that tracks the stock performance of 500 large American companies, which can introduce diversity to your portfolio.
As of March 3, the S&P 500 declined slightly by a little over 7% compared to 12 months ago, according to CNBC’s calculations. However, the index has increased by about 50% since 2018 and grown by about 166% since 2013.
Get CNBC’s free Warren Buffett Guide to Investing, which distills the billionaire’s No. 1 best piece of advice for regular investors, do’s and don’ts, and three key investing principles into a clear and simple guidebook.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
