Costco's stock has decreased by 3% over the past week, yet its performance shows resilience compared to a nearly 10% drop in the broader market. Like Walmart, Costco benefits from significant leverage through purchasing Chinese goods, albeit with challenges from U.S. tariffs. The retailer's membership program contributes 70% of operating income, creating a stable revenue stream. Recent financial reports indicate a 9.1% revenue increase to $62.3 billion. Costco's e-commerce growth and $12.3 billion cash reserve highlight its strong financial position, making it relatively resilient in economic downturns.
"Costco's unique membership model enables it to generate 70% of its operating income from memberships, giving it a significant advantage over competitors like Target and Walmart."
"With a revenue increase of 9.1% in the last quarter, from $58.2 billion to $62.3 billion, Costco showcases robust financial health amid economic challenges."
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