Costco Wholesale Corporation”s stock, trading under the symbol COST, experienced a notable increase of 3% on Thursday after the company reported impressive sales figures for December 2025. The retail giant”s net sales reached $29.86 billion, reflecting an 8.5% rise compared to the same month in 2024.
The company”s comparable store sales demonstrated robust growth, climbing 7% across the board, with U.S. comparable sales increasing by 6.3%. These figures exclude the impacts of gasoline prices and currency fluctuations, providing a clearer picture of the retailer”s performance.
In terms of e-commerce, Costco saw a remarkable surge, with online sales soaring by 18.3% on a comparable basis. This growth marks an acceleration from the 16.3% increase seen in November, highlighting a rising trend of consumers opting for delivery and pickup services.
Customer traffic at Costco rose by 2.7% during the five-week period ending January 4, while the average transaction value saw a boost of 4.2%. All merchandise departments reported positive comparable sales, indicating that both essential items and discretionary purchases were thriving.
The company”s low-price strategy seems to be resonating with consumers, as they increasingly turn to warehouse clubs like Costco for better deals compared to traditional retailers. This competitive pricing model, bolstered by Costco”s bulk buying power, has helped foster customer loyalty and encourage repeat visits.
Analyst Chuck Grom from Gordon Haskett remarked that these results serve as a springboard for the stock”s performance. Despite a decline of 6% in COST shares throughout 2025, the S&P 500 index enjoyed double-digit gains during the same period.
Following the sales report, Phillip Blee from William Blair adjusted earnings estimates upward, suggesting that the data alleviates concerns regarding Costco”s performance in the second quarter. Furthermore, Rupesh Parikh from Oppenheimer identified COST as a top pick, setting a target price of $1,050. He noted the potential for a special dividend or stock split, which could further enhance investor interest.
Currently, Costco”s stock is trading at 41 times its forward earnings, a decrease from over 50 times earlier. The retailer”s December comparable sales held strong against challenging year-over-year comparisons, with the company having averaged over 9% comparable sales growth in early 2024.
Costco”s business model is anchored in a membership structure that ensures a steady income stream from membership fees, while product sales contribute significantly to overall volume. This dual approach provides both stability and growth potential.
