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Costco's US Comp Sales Lead as Domestic Momentum Stays Strong
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Key Takeaways
Costco's U.S. comparable sales rise 10.7%, ahead of overall comparable sales growth of 9.4%.
U.S. comparable traffic gains 3.2%, while average ticket increases 7.3% during the quarter.
Costco said nonfood was the strongest-performing category, supported by quality products and value.
Costco Wholesale Corporation (COST - Free Report) continued to see strong momentum in its core U.S. market during the fourth quarter of fiscal 2026, with domestic comparable sales growth leading other operating regions. U.S. comparable sales increased 10.7% year over year, ahead of the company’s overall comparable sales growth of 9.4%. Adjusted U.S. comparable sales, excluding the impact of gasoline prices and foreign exchange, rose 7.2%, highlighting continued strength in underlying member demand.
The U.S. performance reflected balanced gains in both shopping frequency and average transaction value. During the quarter, U.S. comparable traffic increased 3.2%, while the average ticket advanced 7.3%. On an adjusted basis, traffic growth remained unchanged at 3.2%, while adjusted ticket growth stood at 3.9%. These trends indicate that Costco’s domestic sales growth was supported by both higher member visits and increased spending per transaction.
Management noted that member spending remained resilient, with adjusted comparable sales, excluding gas and foreign exchange, consistently running in the 6%-7% range. The company also highlighted that nonfood sales were the strongest-performing category during the quarter, reflecting member response to quality products and value offerings.
Costco’s U.S. comparable sales strength came as the company maintained its focus on delivering value across merchandise categories. Price reductions implemented during the quarter, including select everyday items, were part of efforts to return value to members following tariff refunds. The combination of higher traffic, larger baskets and continued member engagement supported Costco’s domestic sales momentum in the final quarter of fiscal 2026.
Walmart & Target’s Comp Sales Show Traffic Momentum Strength
Walmart Inc. (WMT - Free Report) continued to deliver steady U.S. comparable sales momentum, with Walmart U.S. comp sales rising 2.6% in the second quarter of fiscal 2027, supported by higher transactions and unit volumes. Walmart reported a 1.5% increase in transactions and a 1.1% rise in the average ticket, while e-commerce remained a key contributor. Walmart U.S. e-commerce sales advanced 24%, reflecting continued strength in digital fulfillment and marketplace growth.
Target Corporation (TGT - Free Report) posted comparable sales growth of 3.8% in the second quarter of fiscal 2026, supported by a 3.6% increase in comparable traffic. Target’s digital comparable sales rose 8.7%, led by more than 25% growth in same-day delivery, while comparable store sales increased 2.7%. Target also highlighted broad-based strength across merchandise categories as it continued investing in value, convenience and its retail experience.
What the Latest Metrics Say About Costco
Costco has seen its shares tumble 1.4% over the past three months compared with the industry’s decline of 1.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 40.59, higher than the industry’s ratio of 27.38. However, it is trading below its 12-month median level of 45.13, indicating some moderation in valuation.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current fiscal-year sales and earnings per share implies year-over-year growth of 7.9% and 10.4%, respectively. For the next fiscal year, the consensus estimate indicates a 7% rise in sales and 9.5% growth in earnings.
The Zacks Consensus Estimate for earnings for the current fiscal year has increased by 7 cents to $22.57 per share, while the estimate for the next fiscal year has risen by 25 cents to $24.71 per share over the past seven days.
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Costco's US Comp Sales Lead as Domestic Momentum Stays Strong
Key Takeaways
Costco Wholesale Corporation (COST - Free Report) continued to see strong momentum in its core U.S. market during the fourth quarter of fiscal 2026, with domestic comparable sales growth leading other operating regions. U.S. comparable sales increased 10.7% year over year, ahead of the company’s overall comparable sales growth of 9.4%. Adjusted U.S. comparable sales, excluding the impact of gasoline prices and foreign exchange, rose 7.2%, highlighting continued strength in underlying member demand.
The U.S. performance reflected balanced gains in both shopping frequency and average transaction value. During the quarter, U.S. comparable traffic increased 3.2%, while the average ticket advanced 7.3%. On an adjusted basis, traffic growth remained unchanged at 3.2%, while adjusted ticket growth stood at 3.9%. These trends indicate that Costco’s domestic sales growth was supported by both higher member visits and increased spending per transaction.
Management noted that member spending remained resilient, with adjusted comparable sales, excluding gas and foreign exchange, consistently running in the 6%-7% range. The company also highlighted that nonfood sales were the strongest-performing category during the quarter, reflecting member response to quality products and value offerings.
Costco’s U.S. comparable sales strength came as the company maintained its focus on delivering value across merchandise categories. Price reductions implemented during the quarter, including select everyday items, were part of efforts to return value to members following tariff refunds. The combination of higher traffic, larger baskets and continued member engagement supported Costco’s domestic sales momentum in the final quarter of fiscal 2026.
Walmart & Target’s Comp Sales Show Traffic Momentum Strength
Walmart Inc. (WMT - Free Report) continued to deliver steady U.S. comparable sales momentum, with Walmart U.S. comp sales rising 2.6% in the second quarter of fiscal 2027, supported by higher transactions and unit volumes. Walmart reported a 1.5% increase in transactions and a 1.1% rise in the average ticket, while e-commerce remained a key contributor. Walmart U.S. e-commerce sales advanced 24%, reflecting continued strength in digital fulfillment and marketplace growth.
Target Corporation (TGT - Free Report) posted comparable sales growth of 3.8% in the second quarter of fiscal 2026, supported by a 3.6% increase in comparable traffic. Target’s digital comparable sales rose 8.7%, led by more than 25% growth in same-day delivery, while comparable store sales increased 2.7%. Target also highlighted broad-based strength across merchandise categories as it continued investing in value, convenience and its retail experience.
What the Latest Metrics Say About Costco
Costco has seen its shares tumble 1.4% over the past three months compared with the industry’s decline of 1.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 40.59, higher than the industry’s ratio of 27.38. However, it is trading below its 12-month median level of 45.13, indicating some moderation in valuation.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current fiscal-year sales and earnings per share implies year-over-year growth of 7.9% and 10.4%, respectively. For the next fiscal year, the consensus estimate indicates a 7% rise in sales and 9.5% growth in earnings.
The Zacks Consensus Estimate for earnings for the current fiscal year has increased by 7 cents to $22.57 per share, while the estimate for the next fiscal year has risen by 25 cents to $24.71 per share over the past seven days.
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.