Costco wholesale corporation (cost)_ 2015 recap _ investopedia
2015 saw both Costco Wholesale Corp ( COST )’s share price and market cap jump 13%. Cost of gasoline in mexico The retailer made relatively few changes throughout the year but spent a lot of the year plagued by report after report about health and ethical problems with its products. Road trip fuel cost calculator canada Scandals
In 2015 customers discovered that Costco, despite a 2006 announcement, was still sourcing eggs from factory farms. Calculate fuel cost google maps In factory farms, chickens are caged and their living conditions are considered inhumane.
Cost of shale gas per barrel High-profile celebrities got involved in the movement and urged Costco to switch suppliers. Estimate cost of gas for road trip Costco announced, in early 2016 that it is not entirely dependent on factory farms and is committed to increasing the amount of cage-free eggs it sells in store. Aaa road trip planner gas prices (For related reading, see: Costco Scrambles to Defend Its Egg Policy. Cost of gas heater vs electric )
Shrimp were the next big story for Costco—reports began in August that Costco shrimp are farmed by slaves in Thailand and that consumers were misled as to their origin. Gas cost calculator europe Costco promised to look into the allegations in conjunction with the Thai government and offered a refund to consumers who purchased the shrimp.
In response to consumers looking to purchase natural products, Costco has been increasing its organic offerings and became the largest organic grocer in America in 2015. Costco gas prices mesa az The company also stopped selling chickens which had received antibiotics.
Unfortunately, listeria was found in Costco chickens in April, followed by E. Cost of gas estimator coli in Costco chicken salad in November. Calculate gas cost for travel Aside from the food problems, the website which operates Costco’s photo business was hit with a potential data breach in July, possibly compromising Costco customers’ personal information and leading to Costco immediately shutting down their online photo service until security could be improved. Costco gas prices near me Memberships and Payments
Good news for Costco though is that its memberships were up in 2015. Estimate gas cost By the time Costco’s Fiscal Year 2015 annual report was released in August the retailer had seen membership rates increase by 6% and renewal rates top 91%.
An increase in memberships could be repeated this year following Costco’s biggest change of 2015—the retailer chose not to renew its contract with American Express Co ( AXP), instead spurring the competition between other credit card companies to compete for Costco’s exclusive business. Average gas cost per gallon In March, it was announced that as of April 2016, Visa Inc ( V) cards will be the only accepted credit cards at Costco. Oil vs gas heating cost calculator Customers who previously didn’t qualify for or didn’t want an American Express card will soon be able to charge their large purchases and pay them off later. Fuel distance cost calculator (For more, see: Costco Just Extended Its Advantage Even Further. Fuel cost trip estimator )
The switch to Visa has another benefit for both shareholders and shoppers. Average cost of gas in united states Under the previous contract, Costco was paying 0.6% per swipe to accept American Express cards. Driving gas cost estimator The new contract will see Costco paying almost nothing according to Bloomberg Business. Average cost of fuel 2015 This decrease in expenses will manifest itself in larger profits for Costco and lower prices for customers. Cost of gas for my trip Disappointing Results
Twice in 2015 Costco posted less than stellar results. Fuel price trip calculator First, in April, sales were weaker than expected, and an aggressive share repurchase and small dividend increase placated shareholders. Google fuel cost calculator uk Then, in December, the strong U.S. Costco gas price houston dollar continued to play havoc with Costco’s earnings. Average gas prices month Income was down because of currency fluctuations and lower gas prices. Gas mileage cost savings calculator The overall picture was good—revenue was up in constant currencies and excluding gas sales—but the stock price still took a tumble on the news. History of gas prices in united states The Bottom Line
Overall Costco ended the year with higher revenues and similar profits but with a lower earnings per share (EPS) than at the end of 2014. Compute gas cost for trip Shareholders saw a large increase in the value of their shares and were treated to not only $1.56 in regular dividends but an extra $5 special dividend in February. Cost of gas per trip Membership was up and renewal rates were strong. Gas price history by state Scandals, a higher U.S. Gas fireplace insert installation video dollar and lower gas prices led to disappointing results but the overall value of the company increased and it heads into 2016 with more warehouses, employees and shareholder confidence than last year.