Costco reports 9.2% sales increase in January

ISSAQUAH, Wash. - Costco Wholesale Corporation (NASDAQ:COST), a $462 billion market cap retail giant, announced a significant increase in its January sales figures, with net sales reaching $19.51 billion for the four weeks ending February 2, 2025. This represents a 9.2% rise compared to the $17.87 billion reported in the same period last year. Over the first 22 weeks of their fiscal year, the company’s net sales climbed 8.2%, totaling $113.55 billion, up from the previous year’s $104.94 billion. According to InvestingPro data, Costco’s total revenue over the last twelve months reached $258.81 billion, with a steady growth rate of 5.35%.

The company’s comparable sales, which reflect revenues generated from stores or digital channels operating for at least one year, showed notable performance across various regions. In the United States, comparable sales increased by 9.2% over the four-week period and 6.6% over the 22-week period. Canadian stores saw a 5.7% rise for the month and 5.4% over the 22 weeks. Other international locations experienced a 1.1% increase in the four-week span and 3.7% over the longer period. Overall, the total company comparable sales grew by 7.5% for the month and 6.0% for the 22 weeks. This strong operational performance has contributed to Costco’s impressive stock performance, with a 44.32% total return over the past year.

E-commerce continued to be a strong growth driver for Costco, with a 13.6% increase in comparable sales for the month and an impressive 16.6% rise over the 22-week period. When excluding the impacts from changes in gasoline prices and foreign exchange, the e-commerce sales figures were even more robust, showing a 15.2% increase for the month and 17.3% over the 22 weeks.

As of now, Costco operates a total of 897 warehouses, with a substantial presence in the United States and Puerto Rico, Canada, and various international markets. The company also maintains e-commerce sites in multiple countries, expanding its digital footprint alongside its physical warehouse presence. InvestingPro analysis indicates that Costco maintains excellent financial health with an overall score of 3.07 (rated as GREAT), holding more cash than debt on its balance sheet. For detailed insights into Costco’s valuation and 17 additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.

The company has provided additional discussion of these results in a pre-recorded message available on its investor relations website, which will remain accessible until February 12, 2025.

This report is based on a press release statement issued by Costco Wholesale Corporation and includes factual information without endorsement of claims. The forward-looking statements contained in the original press release and the pre-recorded message involve risks and uncertainties that could affect actual future events or results.

In other recent news, Costco Wholesale Corp (BVMF:COWC34) announced the retirement of Richard Galanti, the company’s former Executive Vice President. The company has not yet publicly named his successor. In terms of financial performance, Costco received an upgrade to an ’AA’ rating from ’A+’ by S&P Global Ratings, due to its strong performance and low leverage. The company’s international expansion has also been successful, with non-U.S. revenue increasing by about $30 billion or 70% compared to 2019, reaching approximately $70 billion in 2024.

In the analysis realm, Bernstein analysts maintained their Outperform rating on Costco with a steady price target of $1,058.00, expressing confidence in the company’s potential for further international expansion. In contrast, Truist Securities maintained its Hold rating on Costco shares with a steadfast price target of $935.00, citing concerns about the current valuation of Costco’s stock. Meanwhile, Stifel analysts reiterated their Buy rating and $1,000.00 price target on shares of Costco, highlighting the company’s strong December sales performance and best-in-class performance as justification for the retailer’s premium multiple.

These are the recent developments concerning Costco, providing investors with an understanding of the company’s current situation and what analysts are saying about its prospects.

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