Costco FY 1Q16 Earnings Call Notes

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Costco Wholesale (COST) Q1 2016 Results – Earnings Call Transcript

Mr. Richard Galanti, CFO

Late November was quite a bit stronger than early November

“it’s October when we said one month does not make a trend. And then the first couple of weeks of November weren’t terribly exciting and then it got more exciting. And middle of November and late November, it was quite a bit stronger than the first part of November.'”

Electronics has turned, fresh foods has been great

“I think if you’d ask me what surprised me in the last month versus the last couple of months, electronic has finally turned and that’s I think a function of people coming in, pricing keeps coming down. I think our fresh foods has been great.”

Consumer spending is back to the old cadence, but…

“Yes, but that doesn’t mean anything for tomorrow.”

Lower prices are helping with TVs as is 4k

“I think the technology, the 4K is helping, but the prices are coming down as well. I was there across the street yesterday and you’ve got smaller flat screens with great quality less than $200. You got bigger TVs less than $1,000. You got as well the giant HD 4K whatever under $3,000 and under $2,000, depending on the size and some of the new technology. So I think all those things are helping us a little bit on that category.”

We’re in our competitors’ stores each week and we assume they’re in ours

“we are our own toughest competitor and I mean that, in our industry, notably Sams and to little extent BJs, but certainly many locations where we compete head to head. We’re in their locations literally every week and I would assume they are in our locations every week. And we feel good about the competitive posture there.”