Retail giant Costco Wholesale (COST) reported strong January sales, with net sales up 9.2% year-over-year to $19.51 billion. This robust performance reflects the company’s continued growth momentum, with net sales for the first 22 weeks of Fiscal 2025 reaching $113.55 billion, up 8.2%. Interestingly, Costco stock has been on an upward trajectory, having gained 2% on Wednesday. COST stock hit another record high of $1,042.88 yesterday on a favorable sales update.
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COST Sees Comparable Store Sales Growth Across All Regions
Costco’scomparable store sales, a key metric that excludes the impact of gasoline prices and foreign exchange, witnessed strong growth across all regions. Company-wide comparable store sales increased by 9.8% in January.
This upside was driven by solid performance across all markets, with the U.S. comparable store sales increasing by 9.2%, Canadian comps up 12.3%, and international sales being 10% higher.
E-commerce Growth Continues to Drive Costco’s Sales
Costco’s e-commerce sales continued to be a significant driver of growth, with comparable sales increasing by 15.2%. One of the factors aiding digital sales growth is the expansion of product offerings to include high-demand items like home furnishings, electronics, and even gold bars. Further, the company is benefiting from collaborations with delivery services like Uber (UBER) Eats and Instacart, which enable faster deliveries.
In addition, investments in technology, such as real-time inventory updates and the expansion of Costco Next (their online-only store), have helped enhance the online shopping experience.
Is COST Stock a Buy or Sell?
On TipRanks, Costco stock has a Moderate Buy consensus rating based on 16 Buys and eight Holds assigned in the last three months. At $1,057.54, the average Costco price target implies a 1.4% upside potential.
