Costco posts 8.6% sales increase in March

ISSAQUAH, Wash. - Costco Wholesale Corporation (NASDAQ:COST), the $427 billion market cap retail giant, announced an 8.6% increase in net sales for the retail month of March, reaching $25.51 billion, up from $23.48 billion in the same period last year. For the first 31 weeks, the company reported net sales of $158.87 billion, marking an 8.3% rise from the previous year's $146.64 billion. According to InvestingPro analysis, the company maintains strong financial health with an overall rating of "GREAT," though current valuations suggest the stock is trading above its Fair Value.

The retailer, known for its membership warehouses, saw comparable sales growth across various regions for the five weeks ending April 6, 2025. In the U.S., comparable sales grew by 7.5%, while Canada and other international locations saw increases of 4.1% and 2.9%, respectively. Online sales continued to outpace physical store sales, with e-commerce growth reported at 16.2%. This performance aligns with the company's broader growth trajectory, as InvestingPro data shows a robust 11% revenue CAGR over the past five years.

When excluding the impacts from changes in gasoline prices and foreign exchange rates, the adjusted comparable sales figures were even more robust. The U.S. saw an 8.7% rise, Canada experienced a 10.6% increase, and other international markets grew by 9.9%. Overall, the company's total adjusted comparable sales rose by 9.1%, and e-commerce jumped by 17.5%.

The report also noted that March included one additional shopping day compared to last year due to the calendar shift of Easter, which positively affected total and comparable sales by approximately 1.5%.

Costco currently operates 903 warehouses globally, with a significant presence in the United States, Canada, and other countries, alongside active e-commerce sites in several markets.

The company's forward-looking statements indicate an awareness of various risks and uncertainties that could impact future results, such as economic conditions, market competition, and consumer spending patterns. Despite these challenges, Costco has demonstrated remarkable stability, maintaining dividend payments for 22 consecutive years and delivering strong returns over both five and ten-year periods. For deeper insights into Costco's financial health and growth prospects, investors can access comprehensive analysis through InvestingPro's detailed research reports, available for over 1,400 top US stocks.

This performance data is based on a press release statement and provides a snapshot of Costco's recent financial activity, reflecting the company's sales trends without suggesting broader market implications.

In other recent news, Costco Wholesale has been at the center of several significant developments. Bernstein analysts have increased Costco's stock price target to $1,177, citing the company's strong revenue growth, despite a slight miss on profit margins and membership fee income. The analysts maintain an Outperform rating, emphasizing Costco's successful consumer attraction and potential for expansion. Meanwhile, DA Davidson reaffirmed a Neutral rating with a $1,000 price target, following the grand opening of Costco's 900th club in Massachusetts, highlighting the company's strategic growth in new regions.

In contrast, Citi analyst Paul Lejeuz reduced Costco's price target to $927 from $1,060, maintaining a Neutral rating. Lejeuz acknowledged Costco's strong business model but noted the stock's premium valuation. The company has also been actively negotiating with Chinese suppliers to reduce prices amid rising U.S. tariffs, a move shared by other major retailers like Walmart. Costco's efforts aim to mitigate the financial impact of tariffs, which have been a challenge for businesses reliant on imports from China.

Additionally, Bernstein analysts have raised Dollar General's stock outlook due to its low exposure to new U.S. tariffs, marking it as one of the least affected retailers. In contrast, companies like Target and Dollar Tree face higher exposure, potentially impacting their margins. These recent developments highlight the ongoing adjustments retailers are making in response to changing trade policies and economic conditions.

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