Costco December Sales Surge 10%, Driven by Strong Holiday Shopping and E-Commerce Growth
Costco Wholesale (COST) has reported an impressive 10% increase in December sales, reaching $27.52 billion. This uptick was largely driven by the strong performance of holiday shopping during key events like Thanksgiving, Black Friday, and Cyber Monday.
In comparison to the previous year, December sales grew by 9.9%, marking a solid recovery in consumer spending. This comes after November sales showed a more modest rise of 5.6%. Across all Costco locations, same-store sales saw an increase of 7.4% year-over-year, which is a clear indication of the retailer’s continued success in drawing shoppers in.
E-Commerce Soars, Fueling Growth
A key highlight from the report is the significant jump in Costco’s e-commerce sales, which surged 34.4% in December. With online shopping continuing to trend upwards, Costco’s digital presence proved to be a major contributor to the retailer’s strong monthly performance.
Costco attributed a significant portion of this digital growth to the year-end holiday shopping season, estimating that 15 percentage points of the e-commerce sales boost came directly from consumer holiday spending.
Strong U.S. Performance Despite External Factors
Excluding fuel prices and currency fluctuations, U.S. comparable sales rose by 9.8% in December, far outpacing analysts’ expectations, which had forecasted a growth of 5.2%. This stellar performance highlights the company’s ability to capture more sales despite challenges in the wider retail environment.
A Strong Year for Costco
For the first 18 weeks of its current fiscal year, Costco’s net sales have risen by 8%, bringing the total to $94.04 billion. This continued growth signals that Costco is on track to have another strong fiscal year, buoyed by a combination of high demand and effective sales strategies.
Costco’s strong performance is also reflected in its stock price. The company’s shares have surged 39% over the past year, currently trading at $927.37 per share, a testament to its growing consumer base and investor confidence.
As consumers continue to turn to Costco for both in-store and online shopping, the company remains well-positioned for future growth as it continues to cater to the needs of a shifting retail landscape.
