Costco Wholesale (COST) has reported that its net sales rose 9% year-over-year to $24.6 billion in September, driven higher as consumers prepared for both Hurricane Helene and an East Coast port strike.
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The September sales gains at the Seattle-based warehouse club follow a 7.1% year-over-year advance in August of this year. Comparable store sales during September rose 6.7%, building on a 5% increase in August.
Costco said that its September sales were given a boost by consumers who stocked up on items at its stores ahead of Hurricane Helen making landfall in the U.S., and before dockworkers on the U.S. eastern seaboard went on strike, stranding shipments and snarling supply chains. Management said several Costco outlets saw their store shelves cleared out in September.
Costco’s Digital Sales Rise
Owing to hurricane season and the port strike, Costco said its September sales were strongest in the U.S. Northeast and State of Texas. However, September’s sales were also bolstered by digital or online sales that increased 22.9% year-over-year. These were purchases made through Costco’s website.
Costco has made increasing its e-commerce sales a top priority. The company’s online sales have also gotten a boost from sales of precious metals such as gold bars and silver coins, which are sold exclusively through the website. Costco recently announced that it will also sell platinum bars to consumers.
COST stock has risen 67% over the last 12 months.
Is COST Stock a Buy?
Costco stock has a consensus Moderate Buy rating among 24 Wall Street analysts. That rating is based on 16 Buy and eight Hold recommendations assigned in the last three months. There are no Sell ratings on the stock. The average COST price target of $941.32 implies 3.54% upside from current levels.
