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Costco's E-commerce Momentum Keeps Its Growth Engine Running
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Key Takeaways
Costco's August digital comps rose 17.9%, outpacing its total comparable-sales gain of 8.4%.
Adjusted digital sales grew 20.7% in fiscal 2026, driven largely by underlying activity.
Costco operates e-commerce sites across the U.S., Canada, U.K., Mexico, Asia and Australia.
Costco Wholesale Corporation (COST - Free Report) continues to demonstrate robust momentum across its digital platforms, underscoring how effectively the retail giant is expanding its e-commerce reach. The company's August sales results show sustained strength in its online channels, with digitally enabled comparable sales surging 17.9% for the four-week retail month ended Aug. 30, 2026. It outpaced the company’s total comparable sales increase of 8.4% for the same period.
For the 16-week fourth quarter, digitally enabled comparable sales expanded 19.5%, while fiscal 2026 digital comps posted a remarkable 20.9% increase. Even when excluding the volatile impacts of foreign exchange rates and gasoline price fluctuations, the momentum remains consistent. On an adjusted basis, digitally-enabled sales grew 17.9% in August, 19.8% in the fourth quarter and 20.7% for the 52-week fiscal year. The narrow gap between reported and adjusted digital growth suggests that the channel’s momentum was driven largely by underlying activity.
By integrating digital convenience into its value-oriented warehouse ecosystem, Costco has successfully unlocked greater member accessibility. Costco’s digital reach spans a broad geographic footprint. The company operates e-commerce sites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan, Australia and China.
As digital adoption gains friction-free traction across international markets, Costco’s e-commerce ecosystem solidifies its position as an increasingly pivotal pillar of the company’s overall retail footprint.
How Costco Compares With Target and BJ’s Wholesale
Target Corporation’s (TGT - Free Report) digital business showed solid momentum in the second quarter of fiscal 2026, with comparable digital sales rising 8.7%, led by more than 25% growth in same-day delivery. Target also reported more than 40% growth in Target+ marketplace GMV and Target Circle 360 membership revenues. Target is further investing in technology and personalization across digital channels, while external AI-platform traffic is growing at more than 3.5 times the industry rate.
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) posted strong digital momentum in the second quarter of fiscal 2026, with digitally enabled comparable sales up 30% and two-year stacked growth of 64%. BJ’s Wholesale said members are increasingly using buy-online-pickup-in-club, same-day delivery and ExpressPay, with digitally engaged members spending more and showing stronger loyalty. BJ’s Wholesale engages its digitally active members via innovative tools like its AI-powered shopping assistant, Bev.
What the Latest Metrics Say About Costco
Costco has seen its shares tumble 6.9% over the past three months compared with the industry’s decline of 8.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 40.72, higher than the industry’s ratio of 27.02. However, it is trading below its 12-month median level of 45.40, indicating some moderation in valuation.
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 9.8% and 13.5%, respectively. For the next fiscal year, the consensus estimate indicates a 7.9% rise in sales and 10.1% growth in earnings.
View the Zacks #1 Rank List
Image: Bigstock
Costco's E-commerce Momentum Keeps Its Growth Engine Running
Key Takeaways
Costco Wholesale Corporation (COST - Free Report) continues to demonstrate robust momentum across its digital platforms, underscoring how effectively the retail giant is expanding its e-commerce reach. The company's August sales results show sustained strength in its online channels, with digitally enabled comparable sales surging 17.9% for the four-week retail month ended Aug. 30, 2026. It outpaced the company’s total comparable sales increase of 8.4% for the same period.
For the 16-week fourth quarter, digitally enabled comparable sales expanded 19.5%, while fiscal 2026 digital comps posted a remarkable 20.9% increase. Even when excluding the volatile impacts of foreign exchange rates and gasoline price fluctuations, the momentum remains consistent. On an adjusted basis, digitally-enabled sales grew 17.9% in August, 19.8% in the fourth quarter and 20.7% for the 52-week fiscal year. The narrow gap between reported and adjusted digital growth suggests that the channel’s momentum was driven largely by underlying activity.
By integrating digital convenience into its value-oriented warehouse ecosystem, Costco has successfully unlocked greater member accessibility. Costco’s digital reach spans a broad geographic footprint. The company operates e-commerce sites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan, Australia and China.
As digital adoption gains friction-free traction across international markets, Costco’s e-commerce ecosystem solidifies its position as an increasingly pivotal pillar of the company’s overall retail footprint.
How Costco Compares With Target and BJ’s Wholesale
Target Corporation’s (TGT - Free Report) digital business showed solid momentum in the second quarter of fiscal 2026, with comparable digital sales rising 8.7%, led by more than 25% growth in same-day delivery. Target also reported more than 40% growth in Target+ marketplace GMV and Target Circle 360 membership revenues. Target is further investing in technology and personalization across digital channels, while external AI-platform traffic is growing at more than 3.5 times the industry rate.
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) posted strong digital momentum in the second quarter of fiscal 2026, with digitally enabled comparable sales up 30% and two-year stacked growth of 64%. BJ’s Wholesale said members are increasingly using buy-online-pickup-in-club, same-day delivery and ExpressPay, with digitally engaged members spending more and showing stronger loyalty. BJ’s Wholesale engages its digitally active members via innovative tools like its AI-powered shopping assistant, Bev.
What the Latest Metrics Say About Costco
Costco has seen its shares tumble 6.9% over the past three months compared with the industry’s decline of 8.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 40.72, higher than the industry’s ratio of 27.02. However, it is trading below its 12-month median level of 45.40, indicating some moderation in valuation.
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 9.8% and 13.5%, respectively. For the next fiscal year, the consensus estimate indicates a 7.9% rise in sales and 10.1% 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.