Costco Wholesale Executive Said Traffic, Or Shopping Frequency, Up 5.2% Worldwide; 5.0% In The U.S. In Q4,; Q4 Average Transaction Down 3.9% Worldwide, Down 4.5% In The U.S., Due To Weak Big-ticket Discretionary Demand, Gas Price Deflation- Conf. Call
Portfolio Pulse from Charles Gross
Costco Wholesale's Q4 report shows a 5.2% worldwide increase in traffic or shopping frequency, with a 5.0% increase in the U.S. However, the average transaction decreased by 3.9% worldwide and 4.5% in the U.S., due to weak big-ticket discretionary demand and gas price deflation.
September 26, 2023 | 9:15 pm
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NEUTRAL IMPACT
Costco's Q4 report shows increased traffic but decreased average transaction, indicating mixed performance. Weak big-ticket discretionary demand and gas price deflation are factors to consider.
The increase in traffic indicates a positive trend for Costco as it shows more customers are shopping at their stores. However, the decrease in average transaction could be a concern as it indicates customers are spending less. This mixed performance could lead to a neutral short-term impact on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100