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Home / Business / Costcos March sales and JetBlue routes to London – The Motley Fool

Costcos March sales and JetBlue routes to London – The Motley Fool



Shares of wholesale juggernaut Costco (NASDAQ: COST) fell about 1.2% in after-sales trade from 19.00. EDT. At the same time, shares on JetBlue (NASDAQ: JBLU) rose 0.5% – and it was on top of a 3.6% gain during the trading day. The volatility of these shares follows updates from both companies. Costco reported March sales data, and JetBlue said it plans to launch routes to London.

Costcos March Sales

In March, Costco's net sales increased by 7.4% the year before to $ 13.87 billion. In particular, however, the period was favorable from an extra day of action compared to the same month last year due to the calendar change at Easter. "This positively affected total and comparable sales by about one to one and a half percent," said the management of the company's sales update.

  A shopping cart in the hallway of a wholesale store.

Image Source: Getty Images.

Same store sales (also called comparable sales) for the period rose 5.7%. Excluding the effect of petrol prices, exchange rates and a change in the way the company records revenue, the same store sales have increased by 6.9%. This adjusted sales growth in the same store accounted for 5.5% growth in the US, 6.7% growth in Canada and 7.4% growth in Costco's other international segment.

Adjusted sales of e-commerce increased by 20.1% year-on-year, highlighting the channel's continued importance for the company's growth history. While this was strong in relation to Costco's total sales growth, there was a decline from an adjusted growth of 21.6% year-on-year in February.

JetBlue's new routes

During the trading day, JetBlue moved its shares higher as the company said traffic in March increased 7.9% year-over-year. The capacity was up 12.6%. Growth was higher than management expected.

But the optimism continued for the stock in retrospect when the company announced plans for its first routes to London. The routes come from both New York and Boston. "London is the largest metropolitan area JetBlue does not yet serve from both Boston and New York," said JetBlue COO Joanna Geraghty in a press release about the new routes.

The company is convinced that it is worth suggesting that these new routes to Europe will be compelling. It's planning to position itself between "sky-high prices – especially in premium cabins" and "a handful of low-cost airlines … with a no-frills, bare-leg approach to flying," the company said. "Especially in Europe, JetBlue will raise the bar on what travelers can expect from a low-cost carrier."

JetBlue plans to offer multiple daily flights from both cities, starting in 2021.


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