Deutsche Bank: Costco Expected To Report November Same-Store- Sales Rose 6%
Paul Trussell of Deutsche Bank is expecting Costco Wholesale Corporation (NASDAQ: COST) to report "solid" November sales, including core same-store-sales rising 6 percent.
"In our view, Costco continues to drive strong traffic trends both domestically and internationally," Trussell wrote in a note on Tuesday. The analyst adds that his checks may suggest trends modestly slowed during Black Friday weekend as the company remained closed on Thanksgiving, impacting hardline and electronic sales.
Costco reported a same-store-sales increase of 7.4 percent in October and 6.2 percent in November.
Trussell states that Costco's sales of food, particularly fresh, remains "strong" and that traffic trends were "relatively healthy" with an expected 3 percent growth in November. However, the analyst expects the average ticket sale to be flat from a year ago as modest food inflation was almost fully offset by deflationary gas prices and foreign exchange conversions.
Shares are Buy rated with a $141 price target.
Latest Ratings for COST
Oct 2014 | Tigress Financial | Downgrades | Strong Buy | Buy |
Oct 2014 | Jefferies | Maintains | Hold | |
Oct 2014 | Deutsche Bank | Maintains | Buy |
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