Jefferies Reports Costco May Strength

According to Jefferies, Costco COST core US sales were in-line with the upper end of expectations while International was better than expected. Jefferies said that Costco continues to benefit from inflation in food and gas. “In periods of rising prices, consumers are seeking out the low cost providers like Costco, and this is evident in its traffic as well as its food and gas sales. The company is also benefitting from a bigger investment in non-food inventory.” Costco closed yesterday at $80.21.