Costco Stock Gains on Rising Sales Data, Bucking Year-to-Date Trend

Costco's stock (COST) is trading 1.5% higher in the pre-market, following the release of robust September sales figures, signaling positive momentum despite underperforming market expectations earlier in the year. The wholesale retailer reported a notable 8% increase in net sales compared to the previous year, driving renewed investor confidence.

While this morning's uptick is encouraging, the stock's year-to-date performance remains a modest 0.55% gain, highlighting the ground it needs to recover to match broader market returns.

Net sales for the five weeks ending October 5, 2025, reached $26.58 billion, up from $24.62 billion in the same period last year. A key driver of this growth was comparable sales, which increased by 5.7% overall.

The U.S. market saw a 5.1% rise, while Canada experienced a 6.3% increase, and other international markets grew by an impressive 8.5%.

Notably, Costco has strategically adapted its reporting metrics to reflect the growing significance of digital channels. The company introduced “digitally-enabled” comparable sales, encompassing all sales initiated through digital devices, including those fulfilled through warehouses, distribution centers, and Costco Travel.

This new metric revealed a substantial 26.1% surge in digitally-enabled comparable sales, underscoring the company's successful pivot towards online retail.

Analysts have observed that Costco's September performance surpassed expectations. Total comparable sales exceeded estimates, rising by 5.7% against an anticipated 4.6%. In the U.S., comparable sales, excluding gas and foreign exchange fluctuations, rose by 5%, exceeding the projected 4.2%. This strong performance has led to a consensus recommendation of 24 buy ratings, 16 hold ratings, and only 1 sell rating among analysts, according to recent reports.

The market’s positive response to Costco’s September sales data suggests a renewed confidence in the company’s ability to navigate the evolving retail landscape. The company's strategic emphasis on digital growth, coupled with its strong sales performance, positions it favorably within the competitive market. However, it remains to be seen whether this momentum can be sustained and translate into stronger year-end performance, which could shift the prevailing market sentiment.