Costco, Richard Galanti, Clorox discussed on CNBC's Fast Money
Back to fast buddy tonight another wild Wall Street. Escalating EC- economic fears dragging down the Dow or the nine hundred points. At one point. Were down quadruple digits. Again with a thousand points we did not finish on our low if you WANNA find any kind of silver lining. We did finish down nine sixty nine on the Dow. Now we've got earnings alert right now and one name that has probably more closely tied to the action on the retail side than the other night is Costco according Reagan Beckett. Hq with more their numbers. Reportings Abe Ryan so Costco beating on profit and revenue for the latest quarter comparable sales coming up nearly nine percent that's including gasoline which was also above analysts estimates. But I WANNA point out. That's for the whole quarter ending February sixteenth now. Costco also gave some comparable sales for the full month of February and they did note an uptick in the fourth week. The last week February associated with the corona virus and consumer purchasing so cost estimates that added that surge in purchasing added three percentage points to make it twelve point one percent for the monthly comp growth for the full company for the full month of February now. Cfo Richard Galanti. Just now giving more detail on the earnings call take a lesson getting deliveries daily. But it's still not enough given the increase levels of demand on certain key items. It's been a little crazy this past week. In terms of outside shopping frequency and sales levels and not only in the United States he also went on to talk about how they are going to have to do some limits. But it's kind of going to vary by store and by region giving shoutout to his team members for working through all that because it's a very evolving scenario. No Costco also said that. Their membership fees came in higher than what some estimates worth quarter e. Commerce sales grew more than twenty eight percent and the timing of the week later. Thanksgiving that actually helped bump up e commerce sales for the quarter by eleven percent. And that's with the outages that we reported around Thanksgiving and Black Friday. If you remember any of that ultimately the Thanksgiving timing still ended up helping prop up the total company's COMP sales again for the quarter by half a percent and they are staying strong sales here in this next quarter because of everything that's going on with the corona virus. Brian Beck over the according. Thank you very much Karen. Odyssey COSTCO'S GONNA see sales boom in some ways but is it just stealing four accordions point taken? Costco COSTCO's fantastic. They do well in any market up down flat. I mean they're just extraordinary. Their execution is always spot on but for other names. Like I wouldn't be buying a three m because they make masks or I wouldn't be buying a clorox because I think just like we might look through you know. Let's say Microsoft cloud growth is slow down a quarter or two? We'll look through that but I think we would also look through a clorox who are three M. because I think ultimately it's going to go back down and it's expensive to gear up really quickly to fulfill demand that skyrockets find it fast. First of all COSCO. We've been on this for awhile. Valuations GonNA matter at a certain point. I mean this is now trading close to thirty four times next year's numbers I mean. The numbers are fantastic. Get all those things. Margins were slightly disappointing. Not Not a big deal with that said I find it fascinating. That people were stocking up on toilet paper. Either it's beyond meat eaters or they're they know something that I don't know either case is not particularly good. I think you are pulling forward so listen. Three twenty five the all time high. You've enjoyed the run-up his stock. There's absolutely nothing wrong with taking profit cost on it. If you look at membership fee that is like an annuity in the stock and the stock rebounded really quickly off that two hundred eight moving average. I still think you're okay to actually buy Coskun. Let's be clear. There's a whole group of stocks. People are buying corona virus portfolio. Small Biotechs so just be careful all right. We've got a lot more money coming up on this big day for the markets. Here's.