Costco Experiences Fifth Straight Month of Slowed Sales Growth.

Costco's sales growth slowed for the fifth consecutive month, with same-store sales increasing 4.3% YoY, down from 4.4% in April. The slowdown was attributed to fluctuations in gasoline prices and foreign exchange rates. Despite this, Costco's shares were down 0.6% in after-hour trading at $1,045.

Costco Wholesale Corporation (NASDAQ:COST) reported a 4.3% year-over-year (YoY) increase in same-store sales for May, marking a slight slowdown from the 4.4% growth seen in April [1][2][3]. The company attributed the slowdown to fluctuations in gasoline prices and foreign exchange rates, which combined to impact sales by 1.3 percentage points and 0.4 percentage points, respectively [2].

Despite the slowdown, Costco's overall sales for May totaled $20.97 billion, representing a 6.8% year-over-year increase [1][2]. The company's performance in the United States, Canada, and international markets showed comparable sales growth of 4.1%, 3.3%, and 6.3%, respectively, while e-commerce sales jumped 11.6% [1][2][3].

The decline in gasoline prices and currency fluctuations had a notable impact on Costco's May sales. Excluding these factors, comparable sales rose by 6.0%, including a 5.5% gain in the United States [1][2][3]. This slight dip in growth rate was expected as the company moves past the strong demand seen from its popular gold bars, which often sold out quickly [1][3].

Analysts at JPMorgan have expressed concern that Costco's comparable sales growth may face some pressure in the coming months, as the company navigates the challenges posed by tariffs and other macroeconomic uncertainties [1][3]. However, other analysts remain optimistic about Costco's ability to handle these challenges and continue to attract consumers with its value deals [2].

In after-hour trading on June 6, 2025, Costco's shares were down 0.6% at $1,045, reflecting market sentiment regarding the company's recent sales performance [2]. The company's stock has surged by over 11% since the start of 2025, but some analysts have expressed a preference for AI stocks due to their potential for higher returns and limited downside risk [3].

References:
[1] https://finance.yahoo.com/news/costco-core-comparable-sales-grew-230028633.html
[2] https://www.tipranks.com/news/costco-cost-sees-modest-slowdown-in-may-sales
[3] https://www.insidermonkey.com/blog/costcos-core-comparable-sales-grew-6-0-in-may-showing-a-slight-slowdown-1549160/