Why Costco Shares Pushed Higher Friday

Investors initially weren't happy with fiscal 2023 first-quarter results from Costco Wholesale (NASDAQ: COST). The big-box retailer reported earnings for the period ended Nov. 20 last night, and the initial reaction Friday morning was a 2.3% drop in shares.But perhaps after evaluating the company's conference call with investors, the stock reversed course. As of 11:15 a.m. ET, Costco shares were trading higher by 1.5%. The early slide came as the company reported net sales rising by 8.1% versus last year but said net income only grew 3% as expenses increased. Gross margin dropped year over year, but management noted a pretax charge of $93 million contributed to that drop. That charge was "primarily related to downsizing our charter shipping activities," according to Costco CFO Richard Galanti.Continue reading
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