COST - Costco's 2Q 2024 Earnings Analyst Q&A Session Provides Insight Into Company Performance And Market Dynamics | Benzinga
The following is the Analyst Q&A from Costco’s (NASDAQ: COST) 2Q 2024 earnings call:
- Question about membership fee increase strategy:
Response: Costco historically reviews membership fee increases every 5 years, currently beyond typical cycle.
No immediate plans to increase fees; focus on delivering value and monitoring business performance.
Fee increase is a matter of "when" rather than "if," but timing is still under consideration
- Question on U.S. expansion and warehouse openings:
Response: U.S. expansion continues with good runway for more warehouses.
Membership renewal rates increase with new openings.
Growth opportunities also seen in international markets.
- Question on price investments in response to competitors:
Response: Costco maintains daily competitive pricing as part of its DNA.
No need for sizable price investments; confident in current positioning.
- Question on evolution of Costco's model and technology use:
Response: Costco is expanding buy online, pickup in warehouse offerings.
Technology is a key priority for enhancing member engagement and driving business.
Data and retail media seen as significant opportunities for growth.
- Question on gross margin ceiling adherence:
Response: Costco adheres to a 14%-15% margin ceiling as part of its core strategy.
No plans to change this approach; focus remains on aggressive pricing for value delivery.
- Question on digital and e-commerce strategy:
Response: Costco's strength in e-commerce is merchandise and value. ...