Friday’s Headlines: Costco Expenses Cost It Big
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Moving Down ⬇️
1. Shares in retail giant Costco fell after hours Thursday following its Q1 earnings report which showed that it had accumulated pre-tax expenses of $283 million on wage and sanitation costs. Sales rose 7% to $36.45 billion, compared with $33.96 billion a year ago, while same-store sales rose 4.8% in the quarter, with online sales jumping 65%. April was a bad month which saw Costco sales fall more than 4% despite an 86% increase in e-commerce activity, leading to a Q1 revenue take of $838 million, or $1.89 per share — a 7.6% decrease year-on-year. Get the complete earnings here.
2. On the other side of retail, luxury retailer Nordstrom saw same-store sales fall 40% in Q1, but still believes itself to be in a better position than its struggling peers. The family-owned retail giant reported revenue of $2.12 billion and a loss per share of $3.33, swinging to a net loss of $521 million versus a $37 million profit during Q1 last year. The Seattle-based company said roughly 40% of its department stores are now back open for business after being forced to temporarily shut in March. Read the complete earnings report here.
3. Veeva Systems easily topped first-quarter and 2020 guidance expectations but fell more than 3% after-hours on Thursday. For the first quarter of 2020, the cloud company reported adjusted earnings of $0.66 per share on a 38% revenue increase to $337.1 million. Veeva shares have gained 42% YTD versus the S&P 500’s more than 6% fall in the same period. Get Veeva’s full earnings report here.