Overview
- Costco’s stock fell about 4% after Thursday’s June sales update showed net sales of $29.24 billion and comparable sales up 8.8% for the five weeks ended July 5.
- Adjusted core comparable sales excluding gasoline and currency effects ran near 7.6% in the U.S. and about 7.0% globally, a slowdown from May’s stronger pace.
- Major firms including Evercore, Goldman Sachs and J.P. Morgan maintained Buy/Outperform ratings and left price targets clustered around $1,100, implying roughly 20% upside from recent trading levels.
- Analysts warned three near‑term headwinds that could pressure momentum: fading gasoline-driven traffic gains, year‑over‑year traffic comparisons that become about 100–150 basis points tougher in July and August, and potential aggressive price cuts from Walmart and Kroger.
- Costco’s membership model and resilient traffic underpin its valuation and give it pricing power, but investors should watch fuel revenues, store-level traffic and competitor pricing for signs of whether growth will reaccelerate or cool further.