Costco stock investors have been benefitting since the sales of the company have been rising since September, according to a report that was out on Wednesday. Being one of the major players of the warehouse club, the company is much loved for its both discretionary and everyday essentials. This is quite visible from the ongoing sales growth. Hence, some critics hold the view that Costco has to fight some strong contenders. This came after the company’s sales momentum.
The sales of Costco were $13.82 billion in the fiscal month of October. The comparable sales have also increased by $14.4% every year. The adjusted comparable sales increased to 16.5% which is close to the growth pace of September. This amount is calculated without taking into account the impacts posed by the ongoing fluctuations in currency and the gasoline price.
Adjusted company sales upgraded by 15% every year for the second month. This took place specifically in the three main geographical territories of Canada, the USA, and other global markets. The sales of e-commerce went up to more than 90% and this is not the first time that happened. With the positive results in e-commerce, the overall sales performance was said to be excellent.
The warehouse traffic trends are slowly moving up since the downfall following the coronavirus induced lockdown. It rose by 4.6% globally and not only that, but there was also a 6.2% increase in the US domestic market of Costco. This is noteworthy because the infected cases of coronavirus have been increasing in some international markets of the company as well as in the US.
Who or What is the Savior of the Costco Stock Investors?
There are a bunch of those.
1: As more people eat at home, the discount retailer benefits accordingly. Since October, the company witnessed a rise in the demand for both fresh and sundried food by 20%. Non-veg frozen food and shelf-stable foods were the most in-demand.
2: Just like in September, the demand for electronics, some major appliances, and home furnishing stuff made it to the top list of demand.
3: There was also a huge demand for the garden supplies during October as more people have started using their yards to spend time.
4: The majority of the Costco customers did not lose their jobs following the pandemic. Their income was also above average.
5: The range of products that Costco warehouses provide is a major fact. Almost everybody would be attracted to a one-stop mart having all kinds of necessary items.
If you are thinking of becoming an investor then you will find a lot more reasons telling you to go for it, but you have to hurry as Costco stock is rapidly growing its market share.