Costco's Strong Sales Highlight Shift Towards Value-Driven Shopping Amid Economic Turmoil

Costco Wholesale reported a 5.8% sales increase in June, exceeding Telsey Advisory Group's estimate of 4.5%. Core merchandise comp was 6.2%, while core US comp was 5.5%. Total traffic grew 3.4%, and e-commerce sales rose 11.5%. Analyst Joseph Feldman reiterated an Outperform rating and price target of $1,100, stating Costco continues to execute well in an uncertain environment.

Costco Wholesale Corporation (NASDAQ: COST) reported a robust 5.8% sales increase in June, surpassing Telsey Advisory Group's estimate of 4.5%. The company's core merchandise comparable (comp) sales rose by 6.2%, while core US comp sales increased by 5.5%. Total traffic grew by 3.4%, and e-commerce sales surged by 11.5%. Analyst Joseph Feldman reiterated an Outperform rating and price target of $1,100, highlighting Costco's strong performance in an uncertain environment.

For the five weeks ended July 6, 2025, Costco reported net sales of $26.44 billion, up from $24.48 billion in the same period last year. This represents an 8% year-over-year (YoY) increase in net sales. Comparable sales for the period showed a 5.8% increase, with U.S. comparable sales up 5.5%, Canada up 6.7%, and other international markets posting the strongest performance at 10.9%. E-commerce sales continued to outpace in-store growth, rising 11.5% for the month [1].

Excluding the impacts from changes in gasoline prices and foreign exchange, Costco's comparable sales were even stronger at 6.2% company-wide. U.S. comparable sales excluding these factors increased 5.5%, while Canada and other international markets saw adjusted gains of 7.9% and 8.2%, respectively. The retailer's e-commerce business maintained double-digit growth, with adjusted comparable sales up 11.2% for the month and 16% for the 44-week period, highlighting the company’s successful omnichannel strategy [2].

Costco has consistently delivered robust sales figures despite broader economic uncertainties, benefiting from its membership model and reputation for value that continues to attract consumer spending. The company operates 907 warehouses globally and offers e-commerce services in multiple countries, emphasizing its ongoing commitment to growth and adaptation in various markets [3].

References:
[1] https://storebrands.com/costco-reports-solid-june-sales-gains-across-all-divisions
[2] https://www.investing.com/news/stock-market-news/costco-stock-rises-after-reporting-8-jump-in-june-sales-93CH-4128941
[3] https://www.quiverquant.com/news/Costco+Reports+8.0%25+Increase+in+Net+Sales+for+June+2025