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Looking back on large-format grocery & general merchandise retailer stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Costco (NASDAQ:COST) and its peers.
Big-box retailers operate large stores that sell groceries and general merchandise at highly competitive prices. Because of their scale and resulting purchasing power, these big-box retailers–with annual sales in the tens to hundreds of billions of dollars–are able to get attractive volume discounts and sell at often the lowest prices. While e-commerce is a threat, these retailers have been able to weather the storm by either providing a unique in-store shopping experience or by reinvesting their hefty profits into omnichannel investments.
The 4 large-format grocery & general merchandise retailer stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.
Thankfully, share prices of the companies have been resilient as they are up 5.2% on average since the latest earnings results.
Costco (NASDAQ:COST)
Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ:COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.
Costco reported revenues of $79.7 billion, flat year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ gross margin estimates.
Costco delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 9% since reporting and currently trades at $982.85.
Is now the time to buy Costco? Access our full analysis of the earnings results here, it’s free.
Best Q3: BJ's (NYSE:BJ)
Appealing to the budget-conscious individual shopping for a household, BJ’s Wholesale Club (NYSE:BJ) is a membership-only retail chain that sells groceries, appliances, electronics, and household items, often in bulk quantities.
BJ's reported revenues of $5.10 billion, up 3.5% year on year, in line with analysts’ expectations. The business had a strong quarter with an impressive beat of analysts’ EBITDA and EPS estimates.
The market seems happy with the results as the stock is up 12.1% since reporting. It currently trades at $96.
Is now the time to buy BJ's? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Target (NYSE:TGT)
With a higher focus on style and aesthetics compared to other large general merchandise retailers, Target (NYSE:TGT) serves the suburban consumer who is looking for a wide range of products under one roof.