'It's never been a mistake to give Costco the benefit of the doubt,' Jim Cramer of 'Mad Money' says days after the retailer's mixed quarterly report.
The warehouse retailer, pushed to cut prices in the face of tight competition in the grocery arena,in both its fourth quarter and fiscal year ending August. After declining ahead of the report last week, the stock hasn't missed a beat, rising more than 1.5% since the Thursday earnings call.
Cramer contended that the quarter was better than it looked on the surface. Some of the positive aspects of the report, he said, include the club's expanded membership base and renewal rates. Additionally, online sales grew nearly 20%, and the company launched a new store in Shanghai, which registered 200,000 members within weeks.
"Because I'd read the conference call the night before, I knew the headlines were wrong. The quarter was fine, and the stock had to be bought into weakness," the host said. "Sure enough, you've made a quick 10 points if you bought Costco into the panic." In regard to the consumer economy, "we're still seeing good growth, certainly very good renewal rates, good results at openings," said Galanti.
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