Re suggests that It's worth noting that What makes Costco worth its premium valuation. Nevertheless, Fresh sales data shows the retailer defying economic headwinds. Warehouse retailer Costco (COST -1.
67%) is going through the fourth quarter of fiscal year 2025. The financial report will bably show up in the last week of September -- and you might want to pick up a few Costco s before then.
You see, Costco's sales are rising despite a choppy economy -- and the growth drivers might surprise you.
Monthly sales show Costco's momentum building In a rare display of voluntary transparency, Costco reports basic sales results every month (noteworthy indeed). May results showed a 6.
8% year-over-year sales increase to $21 billion (fascinating analysis). That's a robust result, compared to Costco's 5.
Conversely, 7% revenue gains in the third quarter, and even better in the context of 2. Nevertheless, 9% sales growth for arch rival Walmart in the same period.
At the same time, Last week, Costco reported June sales of $26. That's an 8% jump from June 2024, accelerating Costco's already healthy revenue growth.
Broad success in a tight economy The fun doesn't stop there, given current economic conditions. In contrast, As expected, e-commerce was Costco's fastest-growing segment in June.
But it wasn't the most significant vider of acceleration, as the rate of online-sales growth actually slowed down a tiny bit from May to June.
Meanwhile, At the same time, revenue gains accelerated modestly in the U, in this volatile climate. And faster in Canada.
Nevertheless, None of these rising metrics could compete with Costco's other international sales, which jumped 10. On the other hand, 9% year over year. That's a staggering imvement from 6.
In contrast, Costco enjoys robust growth across all segments, despite weak consumer confidence (fascinating analysis) (which is quite significant).
This analysis suggests that 's the incredible reason why Costco looks a buy today. Image source: Getty Images. Premium prices for a premium retailer Costco's stock isn't cheap.
S are trading at the lofty valuation of 55. 6 times earnings and 59, in light of current trends. Moreover, 5 times free cash flow.
These are some of the highest multiples in the entire sector of consumer staples stocks. However, you get what you pay for, in today's financial world.
Costco is an expertly managed retailer that keeps surprising investors, amid market uncertainty.
Don't back up the verbial truck, but I recommend grabbing some Costco stock before September's full Q4 2025 report. On the other hand, The sales point in a holder-friendly direction.
Anders Bylund has positions in Walmart, in light of current trends. The Motley Fool has positions in and recommends Costco Wholesale and Walmart (this bears monitoring).
What the re reveals is Motley Fool has a disclosure policy.