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July 4th - Micron Technology officially launched the expansion project of its western Japan factory, with a total investment of 1.5 trillion yen, for the production of advanced memory chips. This expansion is part of its global capacity expansion plan aimed at meeting the needs of the artificial intelligence industry; the Japanese government will provide subsidies of up to 500 billion yen to share the construction costs. This factory expansion will help Micron improve the energy efficiency and data transmission efficiency of chips required for artificial intelligence services and autonomous vehicles. The expanded production line is expected to be operational and shipping around the summer of 2028.July 4th - The National Data Administration announced today the issuance of the "Guidelines for Data Property Rights Registration (Trial)," which will promote the safe, compliant, and efficient circulation and use of data. The national data management department is responsible for the management of data property rights registration nationwide. Specific responsibilities include establishing and improving a unified national data property rights registration system; guiding and supervising data property rights registration activities nationwide; and constructing and managing the national data property rights registration service system. The national data property rights registration service system aggregates registration results and provides unified services nationwide, including publicizing data property rights registration information, querying and verifying registration results, and supporting the management of registration agencies.US President Trump: Iran is very keen to reach a deal; Iran was given a week off to hold Khameneis funeral.SK Hynix is reportedly considering paying a 0.5% fee on its massive ADR offering.July 4th - The Russian presidential website reported on the night of July 3rd that President Putin stated that large-scale strikes against Ukrainian military-industrial complexes and related facilities must continue. The report stated that Putin inspected an auxiliary command post of the Russian Joint Forces Group that day and held a military meeting with the head of the General Staff of the Russian Armed Forces and commanders of various units to discuss the current situation and recent combat developments in the special military operations area.

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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