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Costco Reports Robust March Sales. Tough Comparisons Are No Concern for Now.Costco Reports Robust March Sales. Tough Comparisons Are No Concern for Now. Barron's (Online); New York Costco Wholesale reported upbeat March comparable sales—a relief for investors worried about how revenue would hold up one year out from the last stimulus payments. Late Wednesday, Costco (ticker: COST) said same-store sales jumped 17.2% in the five weeks ended April 3, comfortably ahead of consensus and led by a 19.1% increase in U.S. sales. Stripping out gasoline and foreign exchange, same-store sales climbed 12.2%. E-commerce sales rose 9.2%. The period had one extra shopping day compared with the year-ago period, due to the timing of Easter. Costco stock rose 1.1% to $591.25 in premarket trading Thursday. The shares have climbed 3% year to date and are up about 62% in the past 12 months. Costco has put up a string of robust comps throughout the pandemic, but this period may have been more closely watched than most. That's because the final round of government stimulus hit eligible consumers' bank accounts in March 2021, making for a particularly difficult year-over-year comparison. Investors may have been particularly pleased to see that the discounter was still able to report results ahead of expectations. Rising prices for goods may have contributed, given that inflation is affecting the price of items across categories. Yet in some ways, Costco is better-positioned to handle an inflationary environment . Cash-strapped consumers are more likely to turn to value-oriented retailers, and higher gas prices may bring members in for discounted fuel , driving more shopping trips. |
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