Costco Wholesale Corporation’s COST June sales data showed that consumer demand remains resilient, even as comparable sales growth moderated. The company continued to benefit from its value-driven pricing, quality merchandise, strong digital momentum and broad warehouse footprint, which are helping attract shoppers in a cautious consumer environment.
Sneak Peek Into Costco’s Comparable Sales Performance
For the five weeks ended July 5, 2026, Costco reported an 8.8% year-over-year increase in total comparable sales. Regionally, comparable sales rose 10.6% in the United States, 3.7% in Canada and 4.7% in Other International markets. While this marked a slowdown from total comparable sales growth of 12.5% in May and 11.6% in April, the June performance still reflected healthy underlying demand.
Excluding the effects of gasoline prices and foreign exchange, U.S. comparable sales increased 7.6%, while Canada and Other International markets posted gains of 4.9% and 5.6%, respectively. Overall, total comparable sales, excluding these factors, rose 7% in June, following increases of 8% in May and 7.8% in April.
Digitally enabled comparable sales remained a standout, rising 20.9% in June, or 21.5% after adjusting for fuel and currency impacts. This followed gains of 21.1% in May and 18.8% in April, underscoring sustained momentum in Costco’s online channel.
Costco’s net sales for June increased 10.6% to $29.24 billion from $26.44 billion in the year-ago period. Although growth moderated from May’s 14.5% increase and April’s 13% gain, the retailer’s June performance suggests that its value proposition and digital strength continue to support solid sales momentum.
How Costco Compares With Walmart and Target
Walmart Inc. WMT continues to post resilient comparable sales growth despite a cautious consumer backdrop. Walmart reported 4.1% U.S. comparable sales growth (excluding fuel) in first-quarter fiscal 2027, supported by a 3% increase in transactions and 26% global e-commerce growth. Walmart also benefited from a stronger marketplace, advertising and Walmart+ membership performance, reinforcing traffic, customer engagement and market-share gains while sustaining healthy comparable sales momentum.
Meanwhile, Target Corporation TGT is also demonstrating solid comparable sales momentum through strong traffic and digital growth. Target delivered 5.6% comparable sales growth in first-quarter 2026, driven by a 4.4% increase in traffic and 8.9% digital comparable sales growth, with strength across all six merchandise categories. Target continues to enhance comparable sales through merchandising innovation, Target Circle 360, same-day delivery and an improved omnichannel experience, positioning Target for sustained long-term growth.
What the Latest Metrics Say About Costco
Costco has seen its shares tumble 4.5% over the past three months compared with the industry’s decline of 3%.
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From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 43.02, higher than the industry’s ratio of 30.43. However, it is trading below its 12-month median level of 46.34, indicating some moderation in valuation despite sustained investor confidence in the stock.
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The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.5% and 13.3%, respectively. For the next fiscal year, the consensus estimate indicates a 7.9% rise in sales and 10.2% growth in earnings.
The consensus estimate for earnings per share for the current and next fiscal year has increased by 6 cents and 7 cents to $20.38 and $22.46, respectively, over the past 60 days.
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Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).