Costco Wholesale Corp. stock tumbled 6% Thursday after an update of November sales with Oppenheimer analysts fretting that the figures showed trends have weakened “meaningfully” in the month. Costco said same-store sales excluding gas rose 4.6%, while three-year adjusted comparable sales were up 27.9% compared with 34.2% in October and 34.2% in September. The company identified weakness at consumer electronics, jewelry and hardware. “With this report and our existing concerns on aggressive Street forecasts, we now expect an even more material reset in consensus forecasts,” said Oppenheimer analysts Rupesh Parikh and Erica Eiler in a note to clients. The pair said they have observed price cuts on consumer electronics at Costco stores and new promotions to drive big-ticket sales, but these appear not to be working. “As we await a full reset of Street figures, and given potentially lingering big ticket headwinds, we are removing COST from top pick status,” they wrote. “For longer-term players, we would continue to take advantage of dips in COST shares.” Costco shares are down 11% in the year to date, while the S&P 500 has fallen 14.7%.
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