This earnings season has emphasized the struggles afflicting traditional retail.peshkov/Getty Images/iStockphoto
Costco Wholesale Corp.'s stock is shaping up for a busy trading day after the company managed to rise above the retail malaise that has weighed on its peers.
After the close of trading on Thursday, Costco released fiscal third-quarter adjusted earnings of $1.59 (U.S.) a share, handily beating the average analyst forecast of $1.31. The company also surprised the Street with the strength of its same-store sales growth, which came in at 5 per cent.
This earnings season has emphasized the struggles afflicting traditional retail, with performance among large chains including Macy's Inc., Nordstrom Inc., and Tiffany & Co. hit hard by the rising prevalence of e-commerce and weak mall traffic.
While not immune to those pressures, Costco has been a bright spot among bricks-and-mortar retailers, as its warehouse-club model has provided some resiliency.
Both the Canadian and U.S. earnings dockets are clear on Friday, with no S&P/TSX composite index companies, nor any S&P 500 index members, due to report financial results.
Nearing the end of earnings season, Canadian profits are on track for a 29-per-cent increase over last year. Even after excluding the energy sector, which is still convalescing from a crash in oil prices, Canadian earnings are set to increase by 15 per cent.
Only about two dozen companies in the Canadian benchmark have yet to report first-quarter results. In the United States, fewer than a dozen first-quarter earnings releases are outstanding. And most of those are retail names.
Despite the trouble in retail, U.S. earnings are on course to rise by 15 per cent over the first quarter of last year, making this earnings season the best in nearly six years, according to FactSet.
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Tim Shufelt