Key facts
- Costco reported net sales of $24.01 billion for May, a 14.5% increase year-over-year.
- Comparable sales rose 12.5% in May, with US customers leading the growth.
- Digital sales increased by 21.1% in May.
- Costco's stock is up approximately 12% year-to-date.
- Analysts maintain a Moderate Buy consensus with an average price target of $1,104.95.
Costco Wholesale Corporation reported a 14.5% year-over-year increase in net sales for May, reaching $24.01 billion. Comparable sales grew 12.5%, with US customers being the primary driver of this growth. Digital sales also showed a strong performance, climbing 21.1% during the month. The company has been pushing into higher-value wellness categories, such as exclusively rolling out O Positiv Health's URO Vaginal Probiotic. Gasoline sales also contributed to the third quarter results. Despite these positive figures, analysts express caution regarding Costco's stock valuation, noting it trades at the highest multiple among large-cap consumer goods companies. Decelerating membership growth and gross margin pressure on core categories are also concerns. Costco's stock has risen approximately 12% year-to-date, outperforming competitors like Walmart and BJ's Wholesale Club. Out of 24 analysts covering the stock, 16 recommend a Buy, seven suggest a Hold, and one advises a Sell, resulting in a Moderate Buy consensus. The average price target is set at $1,104.95.