ISSAQUAH, Wash. - Costco Wholesale Corporation (NASDAQ:COST), now commanding a market capitalization of $411.85 billion, announced a significant increase in net sales for December, marking a 9.9% rise to $27.52 billion compared to $25.03 billion during the same period last year. The retail giant also reported an 8.0% increase in net sales for the first eighteen weeks of its fiscal year, reaching $94.04 billion. According to InvestingPro analysis, while the company maintains strong financial health with a GOOD overall score, the stock currently appears overvalued relative to its Fair Value.
In the United States, Costco saw a 9.3% rise in comparable sales for the five-week period and a 6.0% increase over the eighteen-week span. Canadian stores reported a 4.3% and 5.3% rise for the respective periods, while other international locations experienced a 1.0% and 4.3% uptick. The company's e-commerce segment boasted a robust 34.4% growth in the five-week timeframe and 17.1% over eighteen weeks.
Adjusting for impacts from changes in gasoline prices and foreign exchange, the comparable sales figures were even stronger. In the U.S., the adjusted increase was 9.8% for the five weeks and 7.5% for the eighteen weeks. Canada's adjusted figures showed a 10.3% and 7.8% rise, while other international markets experienced a 9.8% and 8.9% increase, respectively. The total company's adjusted comparable sales for the five and eighteen weeks were 9.9% and 7.7%.
The shift in e-commerce sales due to the later occurrence of Thanksgiving and subsequent shopping events contributed approximately 15 percentage points to the December e-commerce sales increase. This shift also positively impacted total and comparable sales by about one and one-half percent. InvestingPro data reveals that Costco has maintained consistent growth, with a 5-year revenue CAGR of 11% and 21 consecutive years of dividend payments, demonstrating remarkable stability in the retail sector.
Costco currently operates 897 warehouses worldwide, with a strong presence in the United States, Canada, and other international markets. The company also maintains e-commerce sites in multiple countries.
The information provided is based on a press release statement from Costco Wholesale Corporation and includes forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially. These statements are based on current expectations and are not guarantees of future performance.
In other recent news, Costco Wholesale Corporation has reported a significant increase in December sales, with a 9.9% rise from the previous year, reaching $27.52 billion. This performance also extends to the first eighteen weeks of its fiscal year, with an 8.0% increase in net sales. Analysts from Raymond (NS:RYMD) James have raised their stock price target for Costco to $1,070 following the company's strong first quarter results.
In addition, TD Cowen increased its price target for Costco shares, maintaining a Buy rating. The firm highlighted the company's robust consumer appeal, particularly in the United States. Costco's core comparable sales in the U.S. rose by 7%, demonstrating the company's potential for continued revenue growth.
Baird reaffirmed its Outperform rating on Costco, maintaining a price target of $1,075 per share. This endorsement comes after the company reported earnings that slightly exceeded expectations, attributed to stronger gross margins and a favorable foreign exchange gain. Lastly, BMO Capital Markets raised its stock price target for Costco from $1,075 to $1,175, maintaining an Outperform rating. These are the recent developments for Costco Wholesale.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.