The Numbers Don't Lie: Costco Earnings Preview

The Numbers Don't Lie: Costco Earnings Preview

Assessment

Interactive Video

Business, Architecture

University

Hard

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Costco, the largest warehouse club, faces challenges from a strong dollar and falling gas prices affecting sales. Despite this, Costco is expanding with nearly 700 stores and plans to add 20 new stores annually. The company is focusing on growth in the South, Midwest, and Northeast. Capital expenditures have increased significantly to support this expansion. Memberships, particularly executive ones, are a key revenue stream, with significant weekly growth in new members.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the current growth rate of Costco's sales excluding fuel?

Above 4%

Above 7%

Above 5%

Above 6%

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which region is Costco focusing on for expansion due to its growth potential?

South

Southwest

West Coast

Northwest

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How many new stores does Costco plan to add each year?

10

15

20

25

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the current number of paid executive memberships at Costco?

16.4 million

17.4 million

14.4 million

15.4 million

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What portion of Costco's total sales is accounted for by executive members?

2/3

3/4

1/2

1/3