Stock Analysis

Costco Wholesale (NasdaqGS:COST) Releases New Sales Statement For Ending April 06 2025

NasdaqGS:COST
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Costco Wholesale (NasdaqGS:COST) saw a share price movement of 4% over the last quarter, set against a backdrop of several events impacting its performance. The company's quarterly sales grew to $62.53 billion, while revenue increased to $63.72 billion. Moreover, the stock price uptick coincided with significant market movements, such as the Dow jumping 3,000 points after President Trump paused tariffs, causing the Nasdaq to soar by 12%. This broader market rally provided a general uplift, countering earlier negative market trends and supporting the company's stock performance in line with sector momentum.

We've discovered 1 warning sign for Costco Wholesale that you should be aware of before investing here.

NasdaqGS:COST Revenue & Expenses Breakdown as at Apr 2025
NasdaqGS:COST Revenue & Expenses Breakdown as at Apr 2025

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The recent quarterly sales increase to US$62.53 billion and the market rally following the tariff pause have underscored Costco's resilience and adaptability in a fluctuating economic landscape. Over the past five years, Costco shares have delivered a total shareholder return of 238.15%, showing significant long-term appreciation. This contrasts with the company's one-year performance in which its stock reportedly outpaced the Consumer Retailing industry, which returned 26.2% over the same period. Such robust returns highlight Costco's ability to maintain shareholder value even amid market volatility.

The expansion of warehouse locations, enhanced e-commerce efforts, and international market penetration offer pathways for potential revenue and earnings growth. Analysts are anticipating a 6.7% annual revenue growth, driven by these initiatives, aiming for earnings to reach US$10.0 billion by April 2028. Yet, factors such as escalating labor and supply chain costs could pressure profit margins. The recent 4% share price movement, near the current consensus price target of US$1,058.61, suggests investor sentiment is aligned with these growth prospects, but also implies a cautious approach as the stock currently trades at a discount to this target. As Costco continues to execute its growth strategy, the interplay of these elements will be crucial to achieving its revenue and earnings forecasts.

Explore historical data to track Costco Wholesale's performance over time in our past results report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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About NasdaqGS:COST

Costco Wholesale

Engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden.

Solid track record with excellent balance sheet.

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