Posted by & filed under Accounting Theory, Corporate Strategy.

Description: Costco – the huge warehouse style retailer – beat Walmart and Target in sales growth in the most recent quarter. Costco was up over 8% versus about 1.5% for Walmart and 3.2% for Target. Perhaps in a bit of a surprise though, Costco shares fell about 0.1%.

Source: Globe and Mail.com

Date:  March 5, 2015

Link:  http://www.theglobeandmail.com/report-on-business/international-business/us-business/costco-profit-tops-estimates-as-revenue-growth-beats-wal-mart/article23303696/

Discussion Points:

1) What do you think may be some of the reasons behind Costco’s success?

2) What are some internal control considerations for a giant retailer like Costco?

3) Why would Costco’s shares have fallen in the face of this positive news? What might accounting theory have to say about this?

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