Costco's June Sales Rose 10.6%, but the Stock Fell 4%. Here's What Spooked Investors.
The headline numbers looked great. So why did the stock sell off?
Overview
Membership-based wholesale retailer Costco Wholesale (NASDAQ: COST) reported sales for the retail month of June after the market closed on Wednesday, and at a glance, the numbers looked strong. Net sales rose 10.6% year over year to about $29.2 billion for the five weeks ended July 5. U.S. comparable sales, a measure of sales at warehouses open at least a year, climbed 10.6%. And digitally enabled comparable sales jumped nearly 21%. The company also declared its regular quarterly dividend of $1.47 per share.
And yet the stock fell about 4% as of this writing, slipping to about $913 and landing roughly 17% below its 52-week high.
Details
So why would investors sell a report that, on its face, looks like more of the steady growth Costco is known for?
Source
Originally published at www.fool.com.