Home Stock Costco Gains as Fear of Delta of Fuels Demand Amid Supply Hurdles

Costco Gains as Fear of Delta of Fuels Demand Amid Supply Hurdles

imageStock Markets19 minutes ago (Sep 24, 2021 07:15AM ET)

(C) Reuters.

By Dhirendra Tripathi

Investing.com – Costco stock (NASDAQ:COST) traded 0.8% higher in Friday’s premarket as the company overrode cost and supply-side pressures in the fourth quarter to beat all estimates.

Total revenue jumped more than 17% on-year to $62.67 billion as people continued to stock up on essential goods, continuing a pandemic-era spending pattern that was given a new lease of life by the spread of the Delta variant of Covid-19 this summer.

Chief Financial Officer Richard Galanti told analysts Thursday that the company is running out of many of its general items within two weeks and “ordering as much as we can” to replenish the stocks.

The retailer has also placed purchasing limits on selected items, where the fear of Delta has led to a surge in demand. These include toilet paper, paper towels, water and some cleaning items, Galanti told analysts.

Merchandise costs and selling expenses both rose.

Net income rose 20% to $1.67 billion even as the company faced cost pressures due to labor crunch, higher wages, shipping charges and congestion at ports — problem confronting all manufacturers and retailers as they grapple with high demand on one side and disturbed supplies due to lockdowns on the other.

Costco Gains as Fear of Delta of Fuels Demand Amid Supply Hurdles

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Subscribe here


Must Read