Costco Wholesale Corporation (NASDAQ:COST) has outdone its success with business subscribers. It
heavily promotes its executive membership and aims more expansion in its subscriber’s base. It has a
great renewal rate. Another area where Costco excels its rivals is private label merchandise. The Kirkland
Signature brand has been a great success and increasing profitability of the company. Costco is investing
in e-commerce as Walmart has a competitive advantage over there. Management does understand that
it has to compete efficiently as its distinctive value is tied to that fact that member essentially going to
the warehouse. E-commerce will be an important focus for the company as it booked $3.5 billion in
online sales last year. …show more content…
Costco management has done great job building into a $60 million market cap business focusing on
North America and in particular the United States. Although concerns were raised that Costco
warehouse model would not fit international markets. Huge future growth can be expected if
management figures out as to how to succeed in these foreign markets. Also if it performs as it did in
North America, chances are that there will be immense growth in the coming future.
The company makes most of its profits from membership fees. It uses smart supply chain strategies and
is quite effective in cost savings in areas like marketing and advertising. Also it pays good salaries to its
employees along with additional benefits which in turns results in effective workforce. There is less
employee turnover. The workforce is efficient and motivated which results in better results and good
business performance. The company believes in customer satisfaction as well which is why company has
ranked in the top position among its industry in the American Customer Satisfaction Index each year for
more than a decade.
Costco opened 13 new stores during the quarter totaling to 686 warehouses. Out of which …show more content…
With its low price strategy, it is aiming to win over bargain seeking motorists looking for
the cheapest fuel. Costco is dedicated to expand its fuel offer further in Australia.
After we looked into Costco financials, we can analyze the company’s performance. Costco revenue has
increased by $3,559 million from the fiscal year 2014. Gross profit has increased from $ 14,182 million to
$ 15,134 million which is a 7% increase during the fiscal year 2015. Profit before tax and after tax has
risen by 13% and 16% respectively. Earnings per share on 30th August 2014 were 4.65 whereas as at 30th
August 2015, it is 5.37 which mean that there’s an increase of 15%. There has been an appreciation in
share price of 15%. Gross margin have remained the same where was return on equity before tax and
interest was 27% which has now increased to 35%. Return on equity after tax and interest have
increased by 5% over the year which tells that the company is generating good profit with the
shareholder’s money. Current yield is 1.04%. At this very moment Costco share price is $154.07 and has
a 52 week return of
heavily promotes its executive membership and aims more expansion in its subscriber’s base. It has a
great renewal rate. Another area where Costco excels its rivals is private label merchandise. The Kirkland
Signature brand has been a great success and increasing profitability of the company. Costco is investing
in e-commerce as Walmart has a competitive advantage over there. Management does understand that
it has to compete efficiently as its distinctive value is tied to that fact that member essentially going to
the warehouse. E-commerce will be an important focus for the company as it booked $3.5 billion in
online sales last year. …show more content…
Costco management has done great job building into a $60 million market cap business focusing on
North America and in particular the United States. Although concerns were raised that Costco
warehouse model would not fit international markets. Huge future growth can be expected if
management figures out as to how to succeed in these foreign markets. Also if it performs as it did in
North America, chances are that there will be immense growth in the coming future.
The company makes most of its profits from membership fees. It uses smart supply chain strategies and
is quite effective in cost savings in areas like marketing and advertising. Also it pays good salaries to its
employees along with additional benefits which in turns results in effective workforce. There is less
employee turnover. The workforce is efficient and motivated which results in better results and good
business performance. The company believes in customer satisfaction as well which is why company has
ranked in the top position among its industry in the American Customer Satisfaction Index each year for
more than a decade.
Costco opened 13 new stores during the quarter totaling to 686 warehouses. Out of which …show more content…
With its low price strategy, it is aiming to win over bargain seeking motorists looking for
the cheapest fuel. Costco is dedicated to expand its fuel offer further in Australia.
After we looked into Costco financials, we can analyze the company’s performance. Costco revenue has
increased by $3,559 million from the fiscal year 2014. Gross profit has increased from $ 14,182 million to
$ 15,134 million which is a 7% increase during the fiscal year 2015. Profit before tax and after tax has
risen by 13% and 16% respectively. Earnings per share on 30th August 2014 were 4.65 whereas as at 30th
August 2015, it is 5.37 which mean that there’s an increase of 15%. There has been an appreciation in
share price of 15%. Gross margin have remained the same where was return on equity before tax and
interest was 27% which has now increased to 35%. Return on equity after tax and interest have
increased by 5% over the year which tells that the company is generating good profit with the
shareholder’s money. Current yield is 1.04%. At this very moment Costco share price is $154.07 and has
a 52 week return of