Company Of The Day: Costco

-13.97%
Downside
546
Market
469
Trefis
COST: Costco logo
COST
Costco

What?

Costco (NASDAQ:COST) reported a stronger than expected set of Q4 FY’21 results, with net income rising to $1.6 billion versus about $1.4 billion a year ago. However, gross margins are facing pressure, coming in at about 12.6%, down from around 12.95% in the quarter ended May 2021.

Why?

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Costco and the broader retail sector is seeing considerable inflationary pressure, amid higher labor and transportation cost and increasing demand for certain product categories. This is impacting margins.

So What?

However, investors likely expect the margin pressure to be transitory. Costco stock rose by about 1% in after-hours trading on Thursday.

See Our Complete Analysis For Costco

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