Costco Wholesale, the retail giant, announced on Wednesday that its same-store sales rebounded in July, putting an end to a two-month negative streak.
Rise in Same-Store Sales
According to the company, Costco’s same-store sales rose 2.5% compared to the previous year. This is a significant improvement from the 1.4% decline in June and the 0.3% decrease in May.
Excluding Volatile Categories
When excluding volatile categories such as gasoline prices and foreign exchange, Costco’s same-store sales showed an even more impressive growth of 5%.
Net Sales Improvement
In addition to the increase in same-store sales, net sales also saw an improvement in July. The year-over-year growth of 4.5% resulted in a total of $17.6 billion in net sales. This is a notable improvement compared to the 0.4% increase in June and the 1.2% rise in May.
Positive Market Reaction
Following this positive announcement, shares of Costco saw a slight increase of 0.6%, trading at $554.85 each in after-hours trading.
Strong Stock Performance
Despite the softer revenue trends experienced in recent months, Costco’s stock has been performing exceptionally well this year. With a 21% increase, it has outperformed the S&P 500’s gain of 18%.
