Costco's U.S. same-store sales rose 6.9% excluding fuel and FX. Digital comparable sales jumped 18.2%. The question is whether July momentum carries into the back-to-school season.
Alpha Score of 57 reflects moderate overall profile with moderate momentum, moderate value, strong quality, moderate sentiment.
Costco Wholesale reported July net sales of $23.12 billion, up 10.7% from a year earlier. The company released the numbers Tuesday evening.
U.S. comparable sales rose 10.3% on a reported basis. Excluding gasoline price swings and foreign exchange effects, same-store sales climbed 6.9% in the U.S. and 6.6% company-wide. Andrew Yoon, Costco's director of financial planning and investor relations, walked through the results on a recorded call. The July retail month ran from July 6 to Aug. 2, compared with the same four weeks last year.
Digital growth outpaced in-store gains. E-commerce comparable sales, adjusted for fuel and currency, jumped 18.2% in the period. That marks another month of double-digit online expansion for the warehouse club.
Canada lagged the U.S. on a reported basis, with total comparable sales up 4.2%. Adjusted for fuel and FX the figure was 4.9%. Other international markets posted a 6.6% adjusted gain, roughly matching the total company average.
The fuel-price drag is easing. Gasoline deflation, which had been a headwind for several months, appears to have stabilized. That helped reported U.S. comps outpace the adjusted comps by a wide margin. Currency fluctuations are still a small drag in Canada and other markets, though the gap is narrowing.
Costco carries an Alpha Score of 54 out of 100, labeled Mixed, on its stock page. The stock trades at a premium to the broader consumer staples sector, reflecting consistent traffic gains and membership renewal rates. Analysts will watch whether the July momentum carries into August, when back-to-school spending typically lifts foot traffic.
The numbers landed above many internal estimates. Costco does not publish same-store sales forecasts. The stronger traffic and ticket growth suggest the chain's value proposition is resonating even as some retailers report belt-tightening among lower-income shoppers, Yoon said.
A deceleration in discretionary categories would be the biggest risk to the thesis. The club-warehouse chain has held up better than peers so far. Membership fee income, which accounts for the bulk of profit, remains resilient.
Costco reports August sales in early September.
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