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Investing.com -- Shares of Costco Wholesale (NASDAQ:COST) climbed 2% in spite of a broader market downturn, with the S&P 500 sliding 3.75%. The uptick in Costco's stock followed the company's announcement of robust sales for March.
The bulk retailer reported net sales of $25.51 billion for the five weeks ending April 6, 2025, marking an 8.6% increase from $23.48 billion during the same period last year. For the first 31 weeks, Costco's net sales reached $158.87 billion, up 8.3% from $146.64 billion compared to the previous year.
Costco's comparable sales for the period also saw significant growth. In the U.S., comparable sales were up 7.5% for the five weeks and 7.0% for the 31 weeks. Canada and other international locations saw increases as well, with e-commerce sales jumping 16.2% for the five weeks and 16.8% for the 31 weeks.
Adjusting for changes in gasoline prices and foreign exchange, the comparable sales were even more impressive. The total company's adjusted comparable sales rose 9.1% for the five weeks and 8.3% for the 31 weeks. Notably, e-commerce adjusted comparable sales increased by 17.5% and 17.7%, respectively.
The report highlighted that March's sales were positively impacted by approximately one and one-half percent due to an additional shopping day caused by the calendar shift of Easter.
Analysts have taken note of Costco's performance. Telsey analyst Joseph Feldman maintained an Outperform rating and a price target of $1,100.00, stating, "Overall, Costco executed well and gained market share in March 2025." DA Davidson analyst Michael Baker, while reiterating a Neutral rating and a price target of $1,000.00, pointed out that the adjusted U.S. comps for March, excluding the impact of changes in foreign currencies and gas prices, were up 7.2%, which is a slight decrease from February's 8.6% increase, yet traffic growth remains strong.
Costco's ability to outperform expectations and grow its market share, even with the additional shopping day taken into account, reflects the company's solid execution in a challenging retail environment.
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