Shares of Costco Wholesale Corporation (COST) fell .89% to $185.69 on Thursday.
That's following the company's fiscal second-quarter earnings report, which was announced after the close Wednesday. Immediately shares fell several percent in after-hours trading, despite the "very strong" comparable-store sales results, TheStreet's Jim Cramer said on CNBC's "Mad Dash" segment.
The company grew revenue 10.8% year-over-year and reported comp-store sales growth of 8.4%, an impressive figure for retail. However, earnings per share of $1.42 did miss consensus expectations by 4 cents per share.
But here's the thing: Investors were looking for a special dividend and an accelerated buyback. What did Costco do instead? It's using the boost from tax reform to improve customer value and increase employee compensation.
Cramer asked, rhetorically of course, "who are these people to do the right thing by the store and by the workers?"
For years, Costco has set itself apart from its competition by offering attractive wages and benefits to its workers. The fact it is improving those compensation levels should come as little surprise.
"There is nothing wrong about what they did," said Cramer, who also manages the Action Alerts PLUS charitable trust portfolio.
Is this report "another nail if the coffin of the bear case," as one JPMorgan analyst put it? "I think that's right," Cramer reasoned.
"Costco's doing just fine," he concluded.
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