2008)
Financial figures presented during the course of this study relate and reinforce Costco's continuing history of making a profit from its sales. In addition, numerous publications reveal Costco's continuing growth in its number of warehouses; employee; cardholders; etc.. In turn, this researcher purports that the financial factors relating to Costco reveal a positive, profitable picture of a company that through caring for its customers, as Hudson (2007) contends, presents a "model with a success that outstrips competitors, including its chief rival, Wal-Mart Stores Inc.'s Sam's Club."
Conclusion
No one financial statement tells the complete story."
Beginners' Guide...," 2007)
As this segment's introductory quote purports, no single financial statement reveals a company's entire story. A combination of financial statements, albeit, provide vital information for investors. In turn, information retrieved from financial statements proves to be investor's best tool when he/she makes investment decisions. ("Beginners' Guide...," 2007)
When combined, a number of financial statements, as Costco's financial statements for the five years presented in this study reflect, they, as this researcher initially proposed to do, reveal a picture of the company.
That picture, consequently tells a company's story, as the one in this study tells the story of Costco. Hoff noted earlier in this study that due to the dearth of better options as fewer buyers shop at malls and other retail stores, numerous clothing companies recently decided to lower their prices and sell at Costco.
Selling their products at lower prices adds up to be more profitable than not selling them. In turn, Costco passes on lower prices to its customers, giving them a good "deal."
Future Projections
Galanti contends that consumers are just now beginning to realize with Costco, as with other companies, that increasing commodity costs, as well as, rising general merchandise costs will continue to cost more than previously seen, other than with gasoline. (D' Innocenzio, 2008) Higher energy costs not only adversely impact Costco's gas operations, but also affect freight costs of distributing merchandise. In turn, profits for the fourth quarter ending August 31, 2008 are expected to be "well below" the estimate of analysts Thomson Financial polled - $1 per share for the fourth quarter. "Costco's shares fell almost 12%, or $8.57, to close at $63.43." Costco plans to report 2008 fourth-quarter and fiscal year results October 8, 2008. (D' Innocenzio, 2008) at this time, more figures...
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