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Can Costco Keep Its Sales Momentum Going After a Solid July?
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Key Takeaways
Costco reported July comparable sales growth of 8.9% across regions.
COST's digital comparable sales rose 17.7%, extending strong online momentum.
Costco's net sales climbed to $23.12 billion, supported by warehouse and digital growth.
Costco Wholesale Corporation’s (COST - Free Report) July sales results reflected resilient consumer demand, with comparable sales advancing across regions and digitally enabled sales maintaining strong momentum. The company continues to benefit from its value-driven pricing, quality merchandise and broad warehouse footprint, which are helping attract shoppers in a cautious consumer environment.
Breaking Down Costco’s July Sales Numbers
For the four weeks ended Aug. 2, 2026, Costco reported an 8.9% year-over-year increase in total comparable sales. Regionally, comparable sales rose 10.3% in the United States, 4.2% in Canada and 6% in Other International markets. This compares with total comparable sales growth of 8.8% in June and 12.5% in May.
Excluding the impacts of gasoline prices and foreign exchange, comparable sales increased 6.9% in the United States, 4.9% in Canada and 6.6% in Other International markets. Overall, total comparable sales, excluding these factors, rose 6.6% in July compared with increases of 7% in June and 8% in May.
Digitally enabled comparable sales remained a key growth driver, rising 17.7% in July, or 18.2% after adjusting for gasoline and foreign exchange impacts. Although growth moderated from 20.9% in June and 21.1% in May, the double-digit increase underscores sustained momentum in Costco’s digital channel.
Costco’s July net sales increased 10.7% year over year to $23.12 billion from $20.89 billion. This compares with net sales growth of 10.6% in June and 14.5% in May.
Costco appears to have several factors supporting continued sales growth, including its value proposition, steady warehouse traffic and rapidly expanding digital business. July's broad-based comparable sales gains also suggest that growth is not dependent on a single market.
How Costco Compares With Walmart and BJ’s Wholesale
Walmart Inc. (WMT - Free Report) also displayed steady sales momentum in the first quarter of fiscal 2027. Walmart U.S. comparable sales, excluding fuel, increased 4.1%, supported by a 3% rise in transactions and strong e-commerce activity. E-commerce contributed roughly 530 basis points to comps, while U.S. e-commerce sales advanced 26%. Walmart noted broad-based share gains as increased customer transactions and digital growth supported sales performance.
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) posted a 6.3% increase in total comparable club sales in the first quarter of fiscal 2026, while comps, excluding gasoline, rose 1.5%. Digital remained a notable sales driver for BJ’s Wholesale, with digitally enabled comparable sales jumping 28% and two-year stacked growth reaching 63%. BJ’s Wholesale also recorded positive traffic and continued share gains, while grocery, perishables and sundries supported its core consumables business.
What the Latest Metrics Say About Costco
Costco has seen its shares tumble 5.2% over the past three months against the industry’s rise of 4.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 42.33, higher than the industry’s ratio of 31.58. However, it is trading below its 12-month median level of 45.87, indicating some moderation in valuation despite sustained investor confidence in the stock.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.7% and 13.5%, respectively. For the next fiscal year, the consensus estimate indicates a 7.8% rise in sales and 10.2% growth in earnings.
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Can Costco Keep Its Sales Momentum Going After a Solid July?
Key Takeaways
Costco Wholesale Corporation’s (COST - Free Report) July sales results reflected resilient consumer demand, with comparable sales advancing across regions and digitally enabled sales maintaining strong momentum. The company continues to benefit from its value-driven pricing, quality merchandise and broad warehouse footprint, which are helping attract shoppers in a cautious consumer environment.
Breaking Down Costco’s July Sales Numbers
For the four weeks ended Aug. 2, 2026, Costco reported an 8.9% year-over-year increase in total comparable sales. Regionally, comparable sales rose 10.3% in the United States, 4.2% in Canada and 6% in Other International markets. This compares with total comparable sales growth of 8.8% in June and 12.5% in May.
Excluding the impacts of gasoline prices and foreign exchange, comparable sales increased 6.9% in the United States, 4.9% in Canada and 6.6% in Other International markets. Overall, total comparable sales, excluding these factors, rose 6.6% in July compared with increases of 7% in June and 8% in May.
Digitally enabled comparable sales remained a key growth driver, rising 17.7% in July, or 18.2% after adjusting for gasoline and foreign exchange impacts. Although growth moderated from 20.9% in June and 21.1% in May, the double-digit increase underscores sustained momentum in Costco’s digital channel.
Costco’s July net sales increased 10.7% year over year to $23.12 billion from $20.89 billion. This compares with net sales growth of 10.6% in June and 14.5% in May.
Costco appears to have several factors supporting continued sales growth, including its value proposition, steady warehouse traffic and rapidly expanding digital business. July's broad-based comparable sales gains also suggest that growth is not dependent on a single market.
How Costco Compares With Walmart and BJ’s Wholesale
Walmart Inc. (WMT - Free Report) also displayed steady sales momentum in the first quarter of fiscal 2027. Walmart U.S. comparable sales, excluding fuel, increased 4.1%, supported by a 3% rise in transactions and strong e-commerce activity. E-commerce contributed roughly 530 basis points to comps, while U.S. e-commerce sales advanced 26%. Walmart noted broad-based share gains as increased customer transactions and digital growth supported sales performance.
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) posted a 6.3% increase in total comparable club sales in the first quarter of fiscal 2026, while comps, excluding gasoline, rose 1.5%. Digital remained a notable sales driver for BJ’s Wholesale, with digitally enabled comparable sales jumping 28% and two-year stacked growth reaching 63%. BJ’s Wholesale also recorded positive traffic and continued share gains, while grocery, perishables and sundries supported its core consumables business.
What the Latest Metrics Say About Costco
Costco has seen its shares tumble 5.2% over the past three months against the industry’s rise of 4.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 42.33, higher than the industry’s ratio of 31.58. However, it is trading below its 12-month median level of 45.87, indicating some moderation in valuation despite sustained investor confidence in the stock.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.7% and 13.5%, respectively. For the next fiscal year, the consensus estimate indicates a 7.8% rise in sales and 10.2% growth in earnings.
Image Source: Zacks Investment Research
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.