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On January 5th, Li Qiang, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council, conducted research in Guangdong Province from January 3rd to 5th. While passing by the Shenzhen-Zhongshan Bridge, Li Qiang listened to a briefing on the projects operation and the planning and construction of the Pearl River Estuary cross-sea channel. He emphasized the need to fully utilize advanced technologies, manage and utilize key transportation routes effectively, ensure safe and smooth operation, and better promote connectivity and coordinated development within the Greater Bay Area. At the Foshan International Land Port, Li Qiang learned in detail about the development and operation of cross-border e-commerce and bonded logistics. He stressed the need to unswervingly expand high-level opening-up, better combine "hard connectivity" of infrastructure with "soft connectivity" of rules and standards, coordinate the construction of major open cooperation platforms for technological innovation, service trade, and industrial development, expand digital trade and green trade, orderly expand independent opening-up in the service sector, actively expand imports, and promote balanced development of imports and exports.On January 5th, Li Qiang, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council, conducted research in Guangdong Province from January 3rd to 5th. In Foshan City, Li Qiang visited Guangdong Midea Kitchen Appliances Manufacturing Co., Ltd., and toured its digital and intelligent production line. He pointed out that economic development and improved living standards have brought about many new consumer demands. He stressed the need to deeply study these new changes, accelerate the research and development and production of more high-quality products, and promote a virtuous cycle where demand drives supply and supply creates demand.On January 5th, Li Qiang, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council, conducted research in Guangdong Province from January 3rd to 5th. Li Qiang visited the Shenzhen Shekou Cruise Terminal Helicopter Airport and the Robotics Valley to learn about the development of the low-altitude economy, watched product demonstrations by robotics companies, and inquired in detail about the companies technology transfer and application, and the development of industrial clusters. Li Qiang pointed out that the lifeblood of science and technology lies in its application. He emphasized the need to further improve the industrial ecosystem, cultivate and expand application scenarios, explore effective business models, and promote the rapid iteration and upgrading of new technologies and products such as robots and drones in their expanded applications, so as to better empower various industries and benefit countless households.On January 5th, Li Qiang, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council, conducted research in Guangdong Province from January 3rd to 5th. In Shenzhen, Li Qiang listened to reports on the planning and development of the Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone, learned about the progress of enterprises in the zone in using artificial intelligence to empower research and development in fields such as new materials and biomedicine, and viewed a display of new energy vehicles from BYD. Li Qiang pointed out that technological innovation is the key to winning the future. He emphasized the need to strengthen the leading role of enterprises in innovation, improve support in terms of policies, funding, and talent, leverage the advantages of the Guangdong-Hong Kong-Macao Greater Bay Area to gather innovation resources, and strengthen research and development cooperation in emerging fields and key core technologies to achieve more breakthroughs.European Commission: The EU respects the legitimacy of Venezuelas democratically elected government.

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.