Part 2/7:
During the discussion, analyst Matty Argersinger expressed bemusement over what specifically delighted investors in the report, considering the flat same-store sales. While excluding the influences of foreign currency and gas prices, Costco’s comparable sales were up by a modest 3%. Overall, year-over-year revenue growth was just 2.5%, largely attributed to the opening of new stores rather than the company's existing locations.
Despite these lackluster figures, profits rose by 6%, marginally exceeding expectations. However, Argersinger pointed out that such growth metrics do not seem sufficient to justify Costco's high price-to-earnings (P/E) ratio of 30, highlighting a potential disconnect between investor sentiment and the underlying financials.