Costco's Magnificent Recovery

The results of Costco Wholesale COST for the September quarter were impressive, even if they are already priced into the retailer's shares. Net sales for the fiscal 2010 fourth quarter, the 16 weeks ended August 29, 2010, were $23.59 billion, an increase of 8%. Comparable store sales rose 6% worldwide and 4% in the US for the period that ended last month. International results on a same store basis were up 14%. Costco is a reasonable proxy for the retail industry in the US, or at least the big box part of it. Sales for Walmart WMT, Target TGT, Sears Holdings SHLD, and the other store chains that operate in hundreds of locations and will need to offer discounts to holiday shoppers were also probably strong in the third quarter. Read the rest here.