Wednesday, October 31, 2012

Three Possible Stories Based On the Costco Earnings Statement



Story #1
Compare and contrast with how Sam’s Club and BJ’s Wholesale are doing.  Especially in area of membership as Costco seems to be doing well there.

Story #2
Dive into Costco’s operating costs…if profit is up 27%, but revenue is only up 14%, then it must be doing something right on the costs side of things.  What is it they’re doing?

Story #3
How much does the average person spend at Costco?  How often does the average person go to Costco?  Does Costco supplement, or replace, the more “traditional” supermarket for most customers?   Once the answers to these questions have been obtained, how is this reflected in the earnings statement?

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