Why Costco Stock Took a Step Back Today
Shares of membership-based warehouse chain Costco Wholesale (NASDAQ: COST) took a step back on Friday after the company reported financial results for its fiscal second quarter of 2024. Sales came in a little lighter than analysts expected. And this is a primary reason that Costco stock was down 5% as of 10 a.m. ET.
Among publicly traded companies, Costco has one of the oddest fiscal calendars with its fiscal Q2 ending on Feb. 18. During the 12 weeks leading up to Feb. 18, the company generated total revenue of $58.4 billion, up a healthy 5.7% year over year. But Wall Street had expected just a little more.
Disappointment regarding Costco's top line may be overblown. Those who invest in Costco stock should know that 98% of its revenue comes from low-margin retail sales whereas the remaining 2% is from its membership fees. Missing expectations on retail sales isn't a big deal considering it's not too profitable anyways.
Source Fool.com
