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On January 5th, Sanxia New Materials announced that it plans to acquire a 40% stake in Sanxia New Materials Lingang New Materials (Yichang) Co., Ltd. from Yichang State-owned Capital Investment Holding Group Co., Ltd., for a transaction amount of RMB 0. This transaction constitutes a related-party transaction but does not constitute a major asset restructuring. The company has held a special meeting of independent directors and the board of directors to review and approve the transaction, which does not need to be submitted to the shareholders meeting for review. In the past 12 months, the company has not conducted any related-party transactions with the same related party, and the cumulative transaction amount with different related parties is RMB 156,000.The Bank of Englands consumer credit figures for November were £2.077 billion, below the expected £1.1 billion and the previous figure revised from £1.119 billion to £1.713 billion.The Bank of Englands mortgage lending in November was £4.49 billion, below the expected £4.5 billion and the previous figure revised from £4.273 billion to £4.156 billion.The Bank of England approved 64,530 mortgage loans in November, below the expected 64,400 and the previous figure revised from 65,018 to 65,010.Sunny Optical Technology (02382.HK): In order to promote the rapid development of the Company’s automotive-related optical business, the Company is considering spinning off its spin-off business and listing it independently on the Main Board of the Hong Kong Stock Exchange.

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.

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