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From full global headquarters, this is Motley Fool Money. It's the Motley Fool Money Radio Show. I'm Chris Hilton, joining me in studio this week for Million Dollar Portfolio Matt Argan Singer for Motley Fool Pro and Options Jeff Fisher.

And for Motley Fool, deep value Ron Gross. Good to see you.

As always gentlemen.

Hey, it is our Memorial Day weekend special. We've got news. We've got Nell Mino in front of a live audience at full fest. And as always we'll give you an inside look at the stocks on our radar.

But we begin once again with the retail industry shares of Costco up this week after third quarter profits came in higher than expected. But for the first time in six years, Mattie, same store sales were flat.

Right. I was trying to figure out what investors actually liked about this report because it comes for flat. If you strip out foreign currency gas sales, okay, up 3%. But overall revenue just up 2.5%. Really only because they're opening new stores.

And the E-growth, which of course is a pillar of the business. So that's probably giving it a little bit of a boost.

So six years of same store sales growth, that's phenomenal. And that was bound to end at some point. I think the question Ron becomes three months from now if we're looking at this same number again, then it's no longer a speed bump. Then it's actually a point of concern.

I think that's fair. But as Mattie pointed out, I don't really think there is bad. It does as it looks because of foreign currency and because of gasoline. I think the number is still a pretty solid. Perhaps not as robust as they used to be. But they're still they're opening new stores. They're growing on a per store basis retention is still good. You still have the model working.

And I'll add that you probably are right for another rise to the membership fee at some point, which is another lever they can pull assuming the economy is strong enough and the member base is strong enough. So we can see growth there.

They also have their business shift now going on with the moving to the new credit card, which you'll see that could either be a good thing. It could lead to a lot of growth membership or could not will have to see.

I have a question for you two guys who I know follow Costco closely. Does management talk about Amazon much at all in conference calls. Would you if you were.

Costco. Costco doesn't really mention Amazon by name, but they know they talk a lot about their own e-commerce efforts, which are which are relative on a relative basis doing actually quite well. And they've got a course of relationship box, which is working out.

You can as you can with Amazon not to this extent, but you can buy a lot of junk that amazing kind of assortment. You can obviously buy online as well. I've bought some interesting things myself.

I would just think over time Amazon will eat into that even Costco's business is vulnerable with subscribe and save on Amazon and all the prime members on the deals that exactly are buying more and more of those basics from Amazon.

But I'm like a best by where we say you know best buys really just a showroom for Amazon. I don't think you'll ever say that about Costco. You're going to Costco. You're leaving with a cart full of stuff. If you're going to make that effort. If you're on.

I don't think you're going to say, oh, I see you know seven dozen pieces of licorice. I'm going to go now and Amazon.

No, right. But you might just not go to Costco period. Good. Let's move to niche retail William Sonoma's first quarter profits in revenue came in higher than expected and shares moving higher as well. This is a good quarter run.

Yeah, you know, tough time for retail as we were saying, but I like this report beat on both revenue and earnings West Elm their furniture division of 19% William Sonoma up three and a half percent pottery barn, which has been the weak spot actually pretty robust ecommerce now more than 50% of sales. That was up 8% a very strong report. William Sonoma has struggled over the last. Let's call it year after having a great, great run shares are off quite a bit. But now I think with these numbers look like

it's taking good and the stock where it is could be a nice entry point for investors looking to get in. Well, that's a surprisingly good number. I had no idea that their e-commerce sales were already 50%

Yeah, that was the thesis two or three years ago. They said this is what we need to do. We need to increase that business. And if you didn't buy into that concept that they'd be able to you didn't want to own the stock and they executed.

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