Key Takeaways
- Costco Wholesale sales rose 7% year-over-year in April, with traffic in its U.S. locations up 5%, the company said Wednesday.
- The increase is likely not a reflection of members' desire to stock up and avoid paying higher prices under tariffs, UBS analysts said.
- Instead, analysts believe members are doing a growing share of their shopping at Costco because it offers value and newness.
Costco’s sales rose 7% year-over-year in April as analysts said members did more of their shopping at its warehouses.
Costco Wholesale (COST) reported $21.18 billion in monthly sales, up from $19.8 billion last April, in a sales update on Wednesday. Comparable sales rose 5.2% year-over-year in the U.S., where traffic rose 5%, the company said.
Members are shifting more of their sho👍pping to Costco as they seek out value, UBS analysts wrote in a Wednesd🔥ay note.
Sales of food and sundries, including meat, baked goods and items from the cooler and deli seꦉlections, increased in the high single-digit percent range, the company said. Non-food sales, such as jewelry and home fur🐟nishing purchases, were up in the mid-to-high single-digit percent range, Costco said.
The uptick is unlik🍸ely to reflect members’ temporary desire to stock up on goods ahead of tariffs, given that Costco stocks many consumable good🌃s, UBS analysts said.
“We think the company continues to deliver compelling value, quality, and newness,” UBS analysts wrote. “As a result, its customers continue to consolidate their shopping at this retailer."
Costco shares, about flat Thursday morning, have gained more than 30% ♏over the past year.