Costco Wholesale Corp missed second-quarter revenue estimates on Thursday, as consumers turned frugal on discretionary spending amid persistently high inflation, sending its shares down about 3% in after-hours trading.
Customers queue to enter a Costco Wholesale store in Chingford, Britain March 15, 2020. REUTERS/John Sibley/File Photo GLOBAL BUSINESS WEEK AHEADmissed second-quarter revenue estimates on Thursday, as consumers turned frugal on discretionary spending amid persistently high inflation, sending its shares down about 3% in after-hours trading.
Major U.S. big-box retailers are seeing a slowdown in demand for discretionary items such as toys, electronics and home goods as higher interest rates and surging food prices force consumers to look for more needs-based consumable goods that are pocket-friendly. "We've seen some weakness in what I'll call big-ticket discretionary items," said finance chief Richard Galanti, adding electronics, jewelry and housewares, among others, were the worst performers in February and in the reported quarter.
Several U.S. retailers have in recent weeks commented on how Americans have been changing their shopping patterns and seeking out more bargains and discounts as they deal with inflation levels that haven't been seen in a generation.
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