Discount warehouse retailer Costco Wholesale Corporation (COST) reported on Thursday a +12% jump in net sales in December and a +9% increase in sales for the first seventeen weeks of its fiscal year.
The Issaquah, Washington-based company said that its net sales for December climbed +12% to $11.21 billion. In the same period a year ago sales were $10.05 billion. This five-week period contained an extra day of shopping compared to last year due to the timing of the New Year’s holiday. This extra day positively impacted total and comparable sales by about 2%.
For the first seventeen weeks of the fiscal year, ending December 30, 2012, Costco saw a +9% increase in net sales at $34.42 billion. In the same period a year ago sales were $31.68 billion.
Overall comparable sales were up +9% for December and up +6% for the first seventeen weeks of the fiscal year. Excluding the positive impact of the inflation of gas prices and stronger foreign currencies, comparable sales in December were up +8% and up +5% in the first seventeen weeks of the fiscal year.
Costco shares were flat in premarket trading on Thursday. The stock was up +18.49% in 2012.
The Bottom Line
Shares of Costco (COST) have a 1.08% dividend yield, based on last night’s closing stock price of $101.45. The stock has technical support in the $94-$95 price area. The stock is trading near the all-time high range of $105-$106 a share.
Costco Wholesale Corporation (COST) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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