Costco Wholesale (COST) reported a 6.8% year-over-year growth in its sales to $20.97 billion for the retail month of May (four weeks ended June 1, 2025). While the membership-only warehouse chain’s performance continues to be resilient in a challenging macro backdrop, its topline growth reflected a modest slowdown compared to the 7% growth seen in April sales. Macro uncertainty and trade wars have impacted consumer confidence and spending on discretionary items.
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Costco’s Sales Growth Decelerates in May
Costco’s same-store sales for May grew by 4.3% year-over-year, with the U.S., Canada, and Other International businesses witnessing comparable sales growth of 4.1%, 3.3%, and 6.6%, respectively. The retailer’s e-commerce comparable sales increased by 11.6% last month. In comparison, Costco’s same-store sales increased by 4.4% in April, with e-commerce sales rising 12.6%.
The decline in gasoline prices impacted Costco’s May same-store sales by 1.3 percentage points, while forex had an adverse impact of 0.4 percentage points.
Costco recently delivered better-than-expected results for the third quarter of Fiscal 2025, as the retailer continues to attract consumers with its value deals at a time when macro pressures and tariffs are impacting spending behavior. Costco stated that it was sourcing more items locally and rerouting shipments to mitigate the impact of tariffs on costs while ensuring that it can offer lower prices to consumers.
Is Costco Stock a Buy, Sell, or Hold?
Wall Street is cautiously optimistic on Costco Wholesale stock, with a Moderate Buy consensus rating based on 17 Buys and eight Holds. The average COST stock price target of $1,093.64 indicates a modest upside potential of about 4%.
