Costco (NASDAQ: COST) had a good quarter, especially given the "death of retail" rumors that have been running around Wall Street. They say that a slowing economy will beat back consumer sales between now and the end of the year.
Costco reported net sales for the 16-week fourth quarter ended Sept. 2 increased 3% to $20.09 billion from $19.5 billion a year earlier. Net income was $372.4 million, or 83 cents per share, compared to $355.6 million, or 75 cents.
"The thing that Costco has going for them is that they tend to get a little bit more upscale customers,'' Rachel Wakefield, who helps manage $1.2 billion for Coldstream Capital Management told Bloomberg. And that may be what saved the day for the big retailer.
The rich and near-rich may not be feeling the pinch of an economic slowdown yet.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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