Top Nav

Costco Gets a Boost from Improved Retail Sales

Ian Wyatt

September retail sales figures are out, and the numbers are mixed.

Same-store sales were up 1.6% among 17 U.S. retailers tracked by Thomson Reuters, according to The Wall Street Journal. That’s progress, especially for a month like September that falls in the shopping no-man’s land between the back-to-school rush and the holiday season.

But it’s not nearly the same progress as a year ago. Last September, same-store sales increased 5.5% from the prior year. It’s also much slower than the 6.1% year-over-year gain in August and the 4.8% gain in July.

Still, there were a few bright spots among those 17 retailers whose September sales were made public. Chief among them was Costco (NASDAQ: COST). Sales at the members-based wholesaler climbed 5% in September. That’s pushing shares up 1.5% in mid-day trading today.

Limited Brands (NYSE: LTD), the parent company of six retails brands including Bath & Body Works and Victoria’s Secret, posted similar September sales. The 5% increase in same-store sales outpaced the 4.3% jump analysts were expecting.

The improved sales have yet to do much for the stock prices, however. As of 12:30 p.m. eastern, Limited shares were basically flat for the day.

One retailer that’s getting hammered today is Buckle (NYSE: BKE), a teen apparel company that saw its sales drop off 0.8% last month. That was enough of a drop-off to push shares of the small-cap stock down 2.5% today.

Daily Profit Offer

Sign-up for Daily Profit and each day you'll receive profitable stock recommendations and useful stock market insights that can add wealth to your portfolio immediately. Our research is guided by a simple principle: avoid risk and focus on buying assets at a discount. Simply put, we know you can succeed as an individual investor – and we can help. Sign up to receive 5 weekly issues and one special Weekend Edition of Daily Profit.
You've successfully subscribed, click the link in your email to confirm your subscription.
There was an error, and you have not been subscribed, please try again.