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Jefferies: Raises its price target for Apple (AAPL.O) to $308.92 from $299.88.On July 27, a Yemeni government naval official said that a naval patrol boat was attacked by Houthi rebels in the Red Sea off western Yemen that day, and three people on board were missing. The official, who declined to be named, said the patrol boat was returning from a military mission when it was attacked by armed men on several small boats near Zugayal Island. The patrol boat was destroyed, and the three people on board went missing. The official said the attack was carried out by the Houthis, but provided no evidence. The Houthis have not yet issued any statement or comment on the incident. The Yemeni government forces previously stated that they thwarted an attempt by several Houthi armed vessels to approach Zugayal Island. Zugayal Island is strategically important, located approximately 52 nautical miles (96 kilometers) from the Yemeni Red Sea port city of Hodeidah.On July 27, President Xi Jinping spoke by phone with Brazilian President Lula da Silva at the latters request. Xi emphasized that, facing new circumstances and challenges, China and Brazil, as important members of the BRICS South, should firmly stand on the side of historical righteousness and the progress of civilization, and play a greater constructive role in reforming and improving the global governance system and upholding international fairness and justice. Both sides should work together to promote high-quality development of BRICS cooperation, accurately grasp the direction of cooperation, maintain the momentum of unity, achieve more fruitful results, and write a new chapter of unity and self-reliance in the BRICS South. China highly values Brazils international status and important influence, supports Brazil in safeguarding its sovereignty and independence, opposes external interference, and will contribute to maintaining regional and global peace and stability.JPMorgan Chase raised its price target for Lockheed Martin (LMT.N) from $605 to $620.Daiwa Capital Markets lowered its price target for Tesla (TSLA.O) from $395 to $345.

Costco Margins Are Impacted by Growing Freight And Labor Expenses, And The Stock Price Falls

Charlie Brooks

May 27, 2022 09:50

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Costco Wholesale Corp (NASDAQ:COST) announced a decline in gross margins on Thursday, impacted by rising freight and labor expenses across the United States. The news sent shares of the membership-only retailer down 2% and overshadowed an otherwise positive quarterly report.


Fresh COVID-19 lockdowns in China and the Russia-Ukraine conflict have compounded the problem for U.S. businesses.


Costco announced that it would increase prices in certain food categories in order to battle inflation.


Retailers such as Walmart (NYSE:WMT) Inc and Target Corp (NYSE:TGT) have warned that decades-high inflation will have a negative impact on their earnings, as shoppers hesitate from purchasing non-essential and high-margin goods.


The average Costco buyer earns more than the average Walmart and Target shopper, allowing Costco to generate quarterly earnings and revenue that easily exceeds expectations.


Memberships and sales have been boosted by the company's efforts to keep gas prices several cents below the national average.


Costco, in contrast to Walmart, reported that there has not been a significant shift from branded products to its private label product, Kirkland Signature.


"We aren't really observing a decline in commerce. This year, more money is being spent on tickets, dining out, travel, tires, and gasoline "In a post-earnings conference call, Robert Nelson, senior vice president of finance and investor relations, said.


Costco's gross margins decreased by 99 basis points in the third quarter.


According to data from Refinitiv IBES, Costco's total sales for the quarter ending May 8 increased by 16 percent to $52.60 billion, surpassing analysts' projections of $51.71 billion.


Excluding adjustments, Costco's earnings per share were $3.17, exceeding analysts' expectations of $3.03.