NEW YORK (TheStreet) -- Shares of Costco Wholesale Corp. (COST) are down -1.19% to $118.17 as retailers posted slightly lower-than-expected sales in July as disappointing numbers from the operator of membership warehouse more than offset strength from retail chains, the Wall Street Journal reports.
Costco, which has a significant weighting in Thomson Reuters' sale index, has been a standout of late among retailers, though its sales growth has slowed somewhat. Thursday's results mark the first time in five months that Costco's sales have increased less than expected, the Journal noted.
The company reported a 5% increase in July sales, excluding gasoline, falling short of analysts' estimates for 6% growth. The company said foreign currencies had a slightly negative impact.
TheStreet Ratings team rates COSTCO WHOLESALE CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate COSTCO WHOLESALE CORP (COST) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins."