Costco: Retail is not dead

Costco (COST) may be trading just above $40, which is near a 52-week low, but its fiscal second quarter earnings show that retail is not dead -- at least at companies in the industry known for offering quality products at low prices.

For the last reported period, the warehouse retailer's net sales declined 1 percent to $16.5 billion. Same-store sames were off 3 percent, but almost all of the damage was done outside the U.S. where the sales at stores open more than year dropped 11 percent.