If Costco’s (COST) not safe from the recession, who is? Costco gave an awful profit warning early this morning and blamed high energy costs and inflation. The low-cost, bulk retailer said its Q4 and FY profits will be well below consensus.
This announcement comes on the heels of fantastic June sales numbers, which saw COST report a 9% jump in same-store sales. Wal-Mart (WMT) reported an almost 6% rise.
However, it looks like the tax-rebates that drove those results have dried up. The National Retail Federation estimates that most have been spent and that July will see limited impact from the stimulus.
So, unless Congress decides the country needs another rebate cash injection, is Wal-Mart (WMT) the next to fall?