Stock Update (NASDAQ:COST): Costco Wholesale Corporation Reports May Sales Results

Costco Wholesale Corporation (NASDAQ:COST) reported net sales of $8.98 billion for the month of May, the four weeks ended May 31, 2015, an increase of two percent from $8.78 billion during the similar period last year. For the thirty-nine weeks ended May 31, 2015, the Company reported net sales of $85.31 billion, an increase of four percent from $81.99 billion during the similar period last year.

Comparable sales for the four and thirty-nine week periods were as follows:

4 Weeks 39 Weeks
U.S. 2% 4%
International -4% -2%
Total Company 0% 2%

Comparable sales for these periods, excluding the negative impacts from gasoline price deflation and foreign exchange, were as follows:

4 Weeks 39 Weeks
U.S. 5% 7%
International 8% 7%
Total Company 6% 7%

Additional discussion of these results is available in a pre-recorded telephone message. The recording can be accessed by dialing 1-855-859-2056 (conference ID 94088528). This message will be available today through 5:00 p.m. (PT) on Friday, June 5, 2015.

Costco currently operates 674 warehouses, including 475 in the United States and Puerto Rico, 89 in Canada, 35 in Mexico, 26 in the United Kingdom, 20 in Japan, 11 in Korea, 10 in Taiwan, seven in Australia and one in Spain. The Company plans to open up to an additional 14 new warehouses (including one relocation to a larger and better-located facility) prior to the end of its fiscal year on August 30, 2015. Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom and Mexico.

Certain statements contained in this document and the pre-recorded telephone message constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, breaches of security or privacy of member or business information, conditions affecting the acquisition, development, ownership or use of real estate, capital spending, actions of vendors, rising costs associated with employees (generally including health care costs), energy and certain commodities, geopolitical conditions, and other risks identified from time to time in the Company’s public statements and reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements, except as required by law. (Original Source)

Shares of Costco Wholesale closed yesterday at $142.13 . COST has a 1-year high of $156.85 and a 1-year low of $114.51. The stock’s 50-day moving average is $144.75 and its 200-day moving average is $142.98.

On the ratings front, Costco Wholesale has been the subject of a number of recent research reports. In a report issued on May 29, Barclays analyst Meredith Adler maintained a Hold rating on COST, with a price target of $150, which implies an upside of 5.5% from current levels. Separately, on May 28, Raymond James’ Budd Bugatch reiterated a Hold rating on the stock .

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Meredith Adler and Budd Bugatch have a total average return of 2.4% and 17.4% respectively. Adler has a success rate of 55.8% and is ranked #1748 out of 3610 analysts, while Bugatch has a success rate of 66.0% and is ranked #326.

The street is mostly Neutral on COST stock. Out of 11 analysts who cover the stock, 7 suggest a Hold rating and 4 recommend to Buy the stock. The 12-month average price target assigned to the stock is $159.33, which represents a potential upside of 12.1% from where the stock is currently trading.

Costco Wholesale Corp and its subsidiaries operate membership warehouses. It offers its members low prices on a limited selection of nationally branded and select private-label products in merchandise categories.

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