Better Buy: Costco vs. Nike
If you spent more money on food during the ongoing pandemic than you did on sneakers and sportswear, you'll understand why Costco's (NASDAQ: COST) sales were growing while Nike's (NYSE: NKE) were sinking. But pre-COVID-19, both were strong, innovative companies, and Nike is quickly rebounding from its coronavirus-related plunge. Which one is the better retail stock to buy today?
Costco's bulk-buy model has always been popular with grocery shoppers, which is why it has the highest sales of any food-focused retailer outside of Walmart. People pay to the tune of $60 for an annual membership, and increasingly, $120 for an executive card, for the privilege of shopping in the company's huge warehouses and benefiting from the great prices.
Costco also has pharmacies, travel units, and ear clinics on site in many stores and sells clothing, furniture, and appliances. While some of these ancillary units suffered as COVID-19 struck, the essentials categories were red-hot. And now that most of the company's units are fully open, total sales have soared. Costco has also succeeded in e-commerce, which surged over the past few months. Fiscal fourth-quarter sales were up 12.5% and digital revenue rose 90%. Annual sales increased to $163 billion.
Source Fool.com
