Overview
- Costco, which reported Wednesday, posted $24.01 billion in net sales for the four weeks ended May 31, a 14.5% year‑over‑year rise with total company comparable sales up 12.5%.
- Digitally‑enabled sales climbed about 21%, driven by stronger online orders and higher app and website traffic that helped lift overall comps.
- Membership fee income remained a key profit source, rising roughly 10.7%, with U.S. and Canada renewal rates above 92% to supply high‑margin recurring cash flow.
- Record gasoline volumes boosted traffic and revenue but reduced gross margins, and the company’s comment about passing tariff‑refund benefits to customers drew a negative market reaction.
- Shares moved only modestly after the release and analysts maintain a Moderate Buy consensus with an average price target near $1,104.95, making valuation and margin trends the primary risks to monitor next.