Costco Wholesale shares dropped about 2.2% to $935.47 on Thursday after Walmart's weaker-than-expected U.S. comparable sales raised concerns across the retail sector. Walmart's U.S. comparable sales rose just 2.6%, below the 3.8% Wall Street expected, as higher fuel costs squeezed household budgets. Costco's own operating results remain strong, with fiscal third-quarter net sales up 11.6% to $69.15 billion, adjusted comparable sales up 6.6%, digitally enabled sales up 20.8%, and membership-fee revenue up nearly 11% to $1.37 billion. The stock now trades about 9.5% below the GF Value estimate of roughly $1,030, though it still carries a valuation of around 47 times trailing earnings.
Walmart Inc.Walmart's U.S. comparable sales miss due to higher fuel costs squeezing budgets.
Costco Wholesale CorpRetail sector selloff on Walmart's weak sales, despite Costco's own strong results.
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