Costco's Resilient Sales Growth Reinforces Defensive Stock Thesis

Costco reported strong June sales of $26.44 billion, an 8% YoY increase, driven by 4.7% US comparable sales growth and 10.9% growth in other international markets. E-commerce sales rose 11.5%. The company's steady sales trajectory reinforces its reputation as a defensive retail stock. Costco's peers, Dollar General and Target, reported mixed results, with Dollar General seeing a 2.4% same-store sales increase and Target experiencing a 3.8% decline in comparable sales.

Costco Wholesale Corporation (COST) reported strong June sales, with net sales reaching $26.44 billion, an 8% year-over-year (YoY) increase. This growth was driven by a 4.7% increase in U.S. comparable sales and a robust 10.9% growth in other international markets [1]. E-commerce sales also surged by 11.5%, highlighting the company's continued success in the digital space [1].

The company's consistent sales trajectory further cements its reputation as a defensive retail stock, particularly in an environment of rising inflation and economic uncertainty. Costco's membership-based model and efficient supply chain management have proven to be resilient, with high renewal rates and competitive pricing strategies.

In comparison, Costco's peers have reported mixed results. Dollar General (DG) saw a 2.4% same-store sales increase, while Target (TGT) experienced a 3.8% decline in comparable sales [2]. These mixed results underscore the differing strategies and market positions of these retailers.

Costco's e-commerce performance has been a significant driver of growth, with comparable sales surging by 11.5% in the five weeks ended July 6, 2025. This growth builds on the company's strong online presence and reflects its ability to adapt to changing consumer preferences [1].

Despite the positive results, Costco noted potential risks and uncertainties affecting future performance, including economic conditions, competition, and regulatory challenges [2]. The company's ongoing commitment to growth and adaptation in various markets is evident in its global expansion, with 907 warehouses operating worldwide [2].

References:
[1] https://www.nasdaq.com/articles/costcos-june-sales-climb-robust-115-e-commerce-growth
[2] https://www.quiverquant.com/news/Costco+Reports+8.0%25+Increase+in+Net+Sales+for+June+2025