Club Holding Costco Wholesale (COST) reported strong sales growth in December, demonstrating the retailer’s ability to continue attracting customers despite economic headwinds. For the 5 weeks ended Jan. 1, Costco’s net sales rose 7% year-over-year to $23.8 billion, the company reported Thursday. Total comparable sales, which exclude the impact of fluctuations in gasoline prices and foreign exchange, rose 7.3% in December, ahead of Wall Street’s expectations for a 5.7% increase. Shares of Costco climbed nearly 7% in Friday afternoon trading to about $481 per share. Costco’s December sales were driven by food and sundries, followed by fresh foods. Meanwhile, sporting goods, tires and apparel outperformed, while discretionary goods such as electronics and houseware underperformed. Costco’s ecommerce sales declined 5.4% compared to an 8.9% decline in November. This coincided with higher global store traffic in December, which grew 4.6% year-over-year compared to a 3.4% increase in November. In a research note Friday, analysts at UBS applauded Costco’s “strong improvement” sequentially, but added that “near-term demand is expected to remain subdued as consumers face higher costs and declining savings.” Does matter.” Still, analysts said the retailer “should be well positioned in this environment, and … should see shares bounce back from current levels.” Club Le Costco’s November sales report was soft, with sales up 5.7% year-over-year, fueling concerns over a slowdown in consumer spending. That put pressure on the stock, which fell more than 9% last month. But the bulk retailer’s booming December sales show that Costco is still providing value to its members, especially in the midst of the busy holiday shopping season. While Costco isn’t immune to inflationary pressures squeezing consumers, the company has stellar management that consistently posts top-line sales growth. We’re also anticipating a potential membership-fee hike and a special dividend this year, two that will be positive catalysts for the stock. We believe Costco is the best-run retailer in the world, serving both customers and shareholders. (Jim Cramer’s charitable trust is long cost. See here for a full list of stocks.) As a CNBC Investing Club subscriber with Jim Cramer, you’ll receive trade alerts before Jim trades. Jim waits 45 minutes to send a trade alert before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he waits 72 hours after the trade alert is issued before executing the trade. The above Investment Club information is subject to our terms and conditions and privacy policy, along with our disclaimer. No fiduciary obligation or duty exists, or is created, by virtue of your receipt of any information provided in connection with Investment Club. No specific results or benefits are guaranteed.
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club holding costco wholesale (COST) delivered strong sales growth in December, demonstrating the retailer’s ability to continue attracting customers despite economic headwinds.