Costco (COST) Delivers 7% Sales Growth in April Despite Easter Timing Shift

Warehouse chain Costco Wholesale Corporation (COST) reported a 7% increase in its net sales to $21.18 billion for the retail month of April (four weeks ended May 4, 2025). The company highlighted that this growth came in despite one fewer shopping day in April due to the calendar shift of Easter. Notably, the Easter timing shift adversely impacted Costco’s total and comparable sales by about 1.5% to 2%.

Costco Reports Healthy Sales Growth in April

Costco’s comparable sales in April grew 4.4%. In particular, comparable sales in the U.S., Canada, and Other International segments increased 5.2%, 1.5%, and 3.2%, respectively. Excluding the impact from changes in gasoline prices and forex, Costco’s April comps increased 6.7%. The company’s e-commerce channel continued to be strong, with comparable sales growing 12.6% year over year in April.

Meanwhile, categories that performed well in the retail month of April include packaged food, fresh food, home furnishings, and jewelry.

It is worth noting that Costco’s April sales growth reflects a deceleration from the previous month. The company’s March net sales and comparable sales grew by 8.6% and 6.4%, respectively. Nonetheless, many analysts view Costco as a safer bet during challenging economic times due to its membership model and value proposition.

William Blair Weighs in on Costco’s April Sales

William Blair analyst Phillip Blee reiterated a Buy rating on Costco stock following the April sales update, noting that the top line was driven by higher comparable sales and 29 new warehouses. The analyst also pointed out the solid e-commerce comparable sales reflect “a positive read-through” on the growing appeal of Costco’s digital offerings and consumer sentiment around discretionary purchases.

Blee highlighted that Costco’s adjusted comparable sales growth in April was driven by a 4.2% increase in traffic, slightly below its trailing 12-month average of 4.7% (perhaps 1% to 1.5% above when adjusted for Easter timing) and a 2.4% increase in average transaction (excluding fuel and forex impacts), above its trailing 12-month average of 1.9%.

The analyst slightly increased his sales and earnings estimates for Fiscal 2025 and 2026 to reflect the continued strength over the past two and a half months. Overall, Blee continues to expect COST stock to outperform, as he believes that the company’s scale, simplicity, merchandising capabilities, and value proposition provide flexibility to successfully navigate the tariff challenges with little disruptions.

Is Costco Stock a Good Buy?

Wall Street has a Moderate Buy consensus rating on Costco Stock based on 19 Buys and seven Holds. The average COST stock price target of $1,083.65 implies 7.6% upside potential. Costco stock has risen about 10% year to date, defying the decline in the broader market due to tariff woes.

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