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TAKEAWAYS KEY
- Costco’s ecommerce sales were affected by the Thanksgiving holiday this year, which was a week earlier than last year. This affected comparisons between years.
- November e-commerce sales were "negatively impacted" by around 15 percentage points by the later Thanksgiving period.
- JPMorgan increased its target price on Costco following the November results, citing better than expected core trends.
Costco said in November that ecommerce sales were down as The Thanksgiving holiday this year was one week later than the previous year. It is therefore difficult to compare year over year.
The popular wholesaler said that November e-commerce sales were "negatively impacted by an estimated 15 percentage points" by Thanksgiving, Black Friday and Cyber Monday happening a week later than last year.
This year, the five-day period from Thanksgiving Day to Cyber Monday occurred from Nov. 28 to Dec. 2. It was firmly in the middle of November last year. From the 23rd through the 27th.
Costco has announced its comparable and total sales “were negatively impacted by approximately one and one-half percent as a result of the shift in E-commerce sales.”
Oppenheimer, JPM Stay Bullish on Costco
Rupesh Paraikh, an Oppenheimer Analyst, called Costco as a “discount retailer”. “top pick,” Brokerage firms are also predicting a possible stock split between the wholesaler and retailer. “positive catalyst.”
“From here, we believe continued strong performance in discretionary coupled with grocery momentum should help to sustain healthy top-line momentum," Parikh added. The broker has an overweight rating and $980 target on the stock.
JPMorgan analysts raised their Costco price target to $1,090 from $945 and maintained their overweight rating. The analysts noted that while the shift in dates of Black Friday affected the wholesaler across the board, its “The core Trends” are “”Above expectations and very robust.
Costco’s shares fell about 0.84 percent after Thursday morning, but have risen about 50 percent this year.
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