"Costco's stock is up 14% this year while the S&P 500 has dropped 7%. Its costs should rise soon, however, because the prices of hundreds of items will be affected by tankers trapped and unable to transit the Strait of Hormuz."
"Costco has two things that help it today. One is its ability to buy in bulk as a retailer; Costco currently operates 924 warehouses, including 634 in the United States and Puerto Rico."
"Membership fees account for 2% of Costco's revenue and 73% of gross profit. This margin helps Costco keep in-store prices low. The renewal rates among members has been put at over 90%."
"For the 24 months that ended February 16, revenue rose 8.6% to $136.9 billion. Membership fees revenue rose 13.8% to $2.68 billion. Net income rose 12.5% to $4.04 billion."
Costco's stock has increased by 14% this year, contrasting with a 7% decline in the S&P 500. The company benefits from bulk purchasing and gas stations, keeping prices low. Membership fees, accounting for 2% of revenue and 73% of gross profit, support low in-store prices. Costco has 81 million members, with a renewal rate over 90%. Revenue rose 8.6% to $136.9 billion over 24 months, while membership fees increased by 13.8% to $2.68 billion. Shopping costs are expected to rise due to inflation, particularly in gasoline.
Read at 24/7 Wall St.
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