Hidden Camera Captures Debate Over Costco's Future
By: Nicole Urken
| 03/06/14 - 08:43 AM EST
Stocks in this article:
NEW YORK (TheStreet
) - Costco
this morning reported 4Q EPS of $1.05 vs consensus of $1.71. The miss came from lower gross profit margins, higher SG&A expenses and softer membership fee income growth. Check out the video below where Belus Capital's Brian Sozzi and I debate Costco's future ahead of the quarter.
Ultimately, while this quarter is a disappointment though I am still positive on the name, as February sales are on track (same store sales up 4-5%), store expansion contniues, inventory levels are okay and membership fee income growth is consistent with recent trends. I like the model, management and outlook and think it's buyable here.
--Written by Nicole Urken in New York.
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