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According to the news released by the Russian Air Transport Agency on January 5, in order to ensure the flight safety of civil aviation, Russias Nizhnekamsk, Izhevsk and Perm airports have suspended flights. Earlier on the 5th, Kazan Airport had suspended flights.The Russian Ministry of Defense said on the 4th that Russia will retaliate against the Ukrainian armys use of the US-made Army Tactical Missile System (ATACMS) to attack the Belgorod Oblast.On January 5, the election for the Bundestag, the lower house of the German parliament, will be held next month. Recently, American entrepreneur Musk wrote an article publicly supporting the Alternative for Germany party, which is considered to be far-right, and launched verbal attacks on German Chancellor Scholz and German President Steinmeier on social media. This caused controversy in German politics and triggered opposition and protests from many politicians in German politics. Scholz criticized Musk without naming him in his New Years speech on December 31 last year, saying that Germanys future "will not be determined by the owners of social media." The current Vice Prime Minister Habeck from the Green Party also criticized Musks remarks in his New Years speech. Later, in an interview with Der Spiegel, he also expressed strong dissatisfaction with Musks remarks and warned him not to interfere in the German Bundestag election.According to the Japan Meteorological Agency on the 5th local time, a magnitude 4.0 earthquake occurred in the Fuji Five Lakes area of Yamanashi Prefecture, Japan at around 8:51 a.m. that day. The maximum tremor was 3 and the focal depth was 20 kilometers.Conflict situation: 1. Ukraine claims to have launched a cyber attack on a Russian transport company. 2. Sources said that Ukrainian drones attacked Russian ports, and Russia has not responded yet. 3. The Ukrainian Air Force said that it shot down 34 Russian drones at night. 4. Ukraine used the ATACMS provided by the United States to launch the attack, and Russia vowed to retaliate. 5. Russian Ministry of Defense: The Ukrainian army lost more than 180 people in the Russian "Eastern" cluster action area in one day. 6. According to AFP: Russia intercepted 8 "ATACMS" missiles launched by Ukraine. 7. Russian Ministry of Defense: According to news agencies, Russian troops have taken control of the Nadia settlement in the Luhansk region of Ukraine. Others: 1. Ukrainian media said that Ukraine is about to receive the first batch of European fighter jets. 2. Russias St. Petersburg Airport once implemented temporary restrictions on takeoffs and landings. 3. The United States plans to sanction Serbian oil companies, and Vucic intends to discuss with the United States and Russia separately. 4. The foreign ministers of Ukraine and Turkey spoke on the phone to discuss issues such as Black Sea security. 5. The Prime Minister of Ukraine said that Ukraines top priority in 2025 is to ensure defense and security investment. 6. The United States has invested $175 billion in Ukraine, and the West will discuss further military aid in the near future.

Costco Margins Are Impacted by Growing Freight And Labor Expenses, And The Stock Price Falls

Charlie Brooks

May 27, 2022 09:50

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Costco Wholesale Corp (NASDAQ:COST) announced a decline in gross margins on Thursday, impacted by rising freight and labor expenses across the United States. The news sent shares of the membership-only retailer down 2% and overshadowed an otherwise positive quarterly report.


Fresh COVID-19 lockdowns in China and the Russia-Ukraine conflict have compounded the problem for U.S. businesses.


Costco announced that it would increase prices in certain food categories in order to battle inflation.


Retailers such as Walmart (NYSE:WMT) Inc and Target Corp (NYSE:TGT) have warned that decades-high inflation will have a negative impact on their earnings, as shoppers hesitate from purchasing non-essential and high-margin goods.


The average Costco buyer earns more than the average Walmart and Target shopper, allowing Costco to generate quarterly earnings and revenue that easily exceeds expectations.


Memberships and sales have been boosted by the company's efforts to keep gas prices several cents below the national average.


Costco, in contrast to Walmart, reported that there has not been a significant shift from branded products to its private label product, Kirkland Signature.


"We aren't really observing a decline in commerce. This year, more money is being spent on tickets, dining out, travel, tires, and gasoline "In a post-earnings conference call, Robert Nelson, senior vice president of finance and investor relations, said.


Costco's gross margins decreased by 99 basis points in the third quarter.


According to data from Refinitiv IBES, Costco's total sales for the quarter ending May 8 increased by 16 percent to $52.60 billion, surpassing analysts' projections of $51.71 billion.


Excluding adjustments, Costco's earnings per share were $3.17, exceeding analysts' expectations of $3.03.