Full Breakdown
Costco September Sales Boost Fuels Analyst Optimism
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Core Event
Costco Wholesale reported that September same-store sales rose 11.4% overall, with core comparable sales—excluding gasoline and currency effects—up 7.6%.
Data & Statistics
- Overall same-store sales increase: 11.4%.
- Core comparable sales (ex-gas, ex-currency): 7.6%.
- U.S. core comparable growth: about 8% (analysts note a range of 8%-9%).
- Gasoline segment: described as a record year by CEO Ron Vachris.
- Stock reaction: shares rose nearly 1% after the release and have gained more than 5% since the fiscal Q4 earnings beat.
- Valuation: forward price-to-earnings ratio just over 41×, roughly double the S&P 500 average.
- Tariff refund: $184 million received, representing a little more than one-third of the total refund owed.
Official Statements & Responses
- Ron Vachris, CEO, said the gas business posted a record year and that low-priced fuel continues to draw shoppers into warehouses.
- “These partnerships will complement the successful long-term partnership that we've had with Instacart in the US and Canada,” — CFO Gary Millerchip
- Jim Cramer, host of CNBC’s Investing Club, emphasized that the sales growth demonstrates Costco’s resilience amid “sticky inflation” and higher consumer price sensitivity.
- UBS analysts noted the tariff refund could enable further price cuts and highlighted expanding delivery options as a growth catalyst.
Verbatim Quotes
- “These partnerships will complement the successful long-term partnership that we've had with Instacart in the US and Canada," CFO Gary Millerchip said.” — Gary Millerchip, chief financial officer, Costco Wholesale