Description
Costco delivered an all-around beat in the most recent quarterly result. The company reported net income for the 17-week fourth quarter came in at $2.16 billion or $4.86 per diluted share compared to $1.868 billion or $4.20 per diluted share in the 16-week fourth quarter last year. In terms of sales, net sales for the 17-week fourth quarter were $77.43 billion, an increase of 9.4% from $70.76 billion in the 16-week fourth quarter last year. For the fiscal fourth quarter, food and sundries were relatively strong again, with fresh foods right behind and some offsets on some of the non-food categories. Regarding Q4 comp sales metrics, traffic or shopping frequency increased 5.2% worldwide and 5.0% in the United States. In terms of renewal rates, Costco’s U.S. and Canada renewal rates stood at 92.7%, which is up 0.1% from the 92.6% figure as of the end of Q3. The worldwide rate came in at 90.4%, down 0.1%, reflecting the impact of increasing penetration of memberships from international, which renew at a lower rate in large part because of new openings internationally. So, all in all, progress is being made. Most recently, in Q3 2023, Costco had estimated that year-over-year inflation was in the 3% to 4% range. The management’s estimate for Q4 was inflation in the 1% to 2% range, and it’s trended downward during the quarter.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures
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