Oil prices rise on talk of Russia sanctions; bouncing off recent lows
Investing.com - Costco Wholesale (NASDAQ:COST), the $435 billion retail giant trading at $982 per share, reported June 2025 monthly sales of $26.4 billion, an 8.0% increase year-over-year, as William Blair reiterated its Outperform rating on the stock. According to InvestingPro analysis, the company is currently trading above its Fair Value, with a P/E ratio of 55.3x.
The sales growth was driven by comparable sales growth of 5.8% and the addition of 25 new warehouses, representing 2.8% unit growth. June comparable sales showed reacceleration after two months of sequentially softer performance, largely due to foreign exchange tailwinds that had previously been pressuring results for 14 months. This performance aligns with the company’s trailing twelve-month revenue growth of 5.94%.
Total (EPA:TTEF) adjusted comparable sales increased by 6.2%, excluding a 50-basis-point tailwind related to foreign exchange and a 90-basis-point headwind from gas price deflation. The company maintained stability in both traffic and average ticket growth.
By geographic region, U.S. adjusted comparable sales rose 5.5%, representing an 11.8% two-year stack that aligned with the trailing twelve-month average of 11.7%. Canadian operations saw adjusted comparable sales growth of 7.9%, while other international markets posted 8.2% growth.
The comp improvement triggered a 1.1% rise in Costco shares during after-hours trading, following a period where the stock had remained relatively stagnant over the past month as investors increasingly favored riskier names affected by initial tariff concerns. InvestingPro data shows the company maintains a GREAT financial health score, supported by its 22-year history of consistent dividend payments. Get access to 12 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.
In other recent news, Costco Wholesale reported an 8% increase in net sales for June, amounting to $26.44 billion, compared to $24.48 billion in the same period last year. The company’s total comparable sales rose 5.8% for the five-week period ending July 6, 2025, with U.S. comparable sales up 4.7%, Canada up 6.7%, and other international markets achieving a notable 10.9% growth. E-commerce sales showed a significant increase of 11.5% for the month. Analysts from Mizuho (NYSE:MFG) maintained a Neutral rating on Costco, noting steady U.S. comparable sales growth of 5.5% excluding gasoline for June. JPMorgan reiterated an Overweight rating, highlighting Costco’s international segments outperforming expectations, with Canada and other international markets posting strong results. Evercore ISI maintained an Outperform rating despite signs of slowing sales growth, observing a slight inflationary trend in non-food items. DA Davidson also kept a Neutral rating, citing Costco’s premium valuation and the impact of cannibalization on results. These developments reflect Costco’s continued strong performance amid varying analyst perspectives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.