Interesting article, yet completely uninformative. I would at least like to know why it is management's fault before I make a financial decision. A few examples of how and where management messed up would be helpfull.

The article falls short by looking only at the quarterly numbers. The management absorbed some of the increased costs to keep buyers in the store. The results are seen in increased revenue. This has very good long term potential. What other companies have increasing revenue? Building loyalty with the client has it's benefits and isn't readily seen in the quarterly numbers. It's a short sighted article and goes to the achillies heal of corporate america. Short term vision and without a long term strategy.

How in the world can you make such general comments about "bad" management. Your not talking abot todays Sears or Kmart..Costco is one of the best managed companies in retail. You obviously lack any real retail savy.

This from the person who urged us to buy Overstock.com?

I would have to say that the author of this blog has missed the mark. Once again it shows that all Wall Street and their toady analysts are looking for are short-term profits and do not take the long look in to account. Costco is one of the best managed companies I have studied so far so his comments lack any merit. He needs to do a little more study before shooting off his mouth.

Hey Guys,

Fair points. The article is short sighted. In most if not all cases I take a much broader view of the world. Not in this case. Though revenue increased, I expected better performance when frankly conditions favored management. In the absence of a strong result, I must raise the issue of competence. That is all I am doing here.

As for the Overstock comment, that article posted when shares traded at $9.5. Today they trade for more than $11. I would say I was dead on, but what do I know.

Thanks for comments. I am always open to feedback.

Jamie

Costco is one the few companies that actually value their customers and do not screw them over for the sake of profits. I do not shop at Wal-mart anymore because they don't place value on customers, short term profits are all they seem to focus on, which seems to be what is wrong with Corporate America and what may be our Countries downfall.

I must dismiss your rant on Costco as a myopic view by another talking head with insights limited to those of a scavenging opossum. Your focus on stockholder return as being more important than a solid business model is laughable. Good management is far more than giving stockholders a fat payout. Southwest Airlines gets crummy attention from some market worshipers too.....but what airline has reliably been profitable over hill and dale while the others pay bankruptcy lawyers ?? .....uh huh. And at the same time having the highest customer satisfaction AND the highest employee satisfaction ratings in the industry. Obvioust to me that it is another corporation that "gets it".

I'll side with companies like these every time.

Sheesh..... so I do a quick check on some facts rather than the rant you let loose like a FAUX News reporter and find this comparison. I picked a random date of 7 Feb. 2000 as a starting point and checked stock return on an investment of $1000 to date.

WAL.......return of -7.8%
COST......return of +0.64%

What sort of wacko logic prefers negative numbers over positive in the accumulation of $'s ?

Having been a Manager with Price Club/Costco for over 23 years, I can agree with most of the comments made in this article. From an outside perspective, you all can believe whatever you want. From the inside, Costco has much to learn in regards to individual management styles and the complete disregard from most (not all) managers for the true well being of it's employees. There is more to taking care of employees than an ok salary and average benefit package. The pirate mentality of upper management must change for the well being of the masses.