The stock price of Costco has experienced a decrease of 3.89% on June 5, 20251. The decline of Costco's stock price can be attributed to the following factors:
- Sales Growth in May: Costco reported a 6.8% increase in net sales for May, which is a positive indicator for the company's performance. However, the stock price dropped today, which could be due to market reaction to the sales figures. The market may have had high expectations for the sales figures, and the actual increase of 6.8% may not have met these expectations, leading to a negative reaction from investors2.
- Unfavorable Weather: JPMorgan analyst Christopher Horvers attributed the rare miss in comparable sales to unfavorable weather. The widespread cold and rain, particularly over the crucial Memorial Day weekend, may have impacted sales in May. Additionally, the Northeast, which experienced tougher year-over-year weather during recent weekends, dropped from Costco's list of top-performing regions3.
- Peak in Tariff-Induced Pull-Forward Buying: JPMorgan analyst Christopher Horvers noted that the tariff-induced pull-forward impact reached its peak in April, primarily affecting major appliances but also prompting some related buying in paper goods, reminiscent of last year’s port strike threats and the lingering memory of COVID-era out-of-stocks. The peak in tariff-induced pull-forward buying may have contributed to the decline in sales growth for May3.
In conclusion, the decline in Costco's stock price today can be attributed to a combination of factors, including market reaction to the sales figures, unfavorable weather, and peak in tariff-induced pull-forward buying.
6/5/2025 10:51pm
