NEW YORK ( TheStreet) -- Retail sales for June were largely disappointing following several months of better than expected results tied to warmer than usual weather. We sold out of Costco (COST - Get Report) last week - having run 14% from its recent lows we didn't like the risk/reward. But it's a name that continues to be on our radar screen given its quality brand, dominance in the club warehouse market, strong returns and steady recurring revenues which is driven by its membership fee business.The company disappointed on the same store sales line coming in at the low end of its guide at 3% gain ad 4% consensus. But underlying fundamentals remain strong with core US comps at 3% (and a nice 11% 2 year stacked basis), International comps up 8% (an impressive 17% 2 year stacked) and traffic remained solid at 3% despite the Independence Day shift.
Stephanie Link's Can Kickers: Notes on Costco
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