Costco falls after monthly sales miss estimates with non-food categories turning negative
Scott Olson

Costco Wholesale Corporation (NASDAQ:COST) reported comparable sales for the retail month of November rose 4.3% vs. +7.7% consensus, consisting of a 6.0% gain in the U.S., 1.0% increase in Canada and 1.0% drop for the international business. E-commerce sales were down 10.1% for the month, with the higher exposure to discretionary categories a major factor.
After backing out gas and FX swings, comparable sales were up 5.3% overall and 4.6% in the U.S.
Bank of America noted that non-food items saw the first decline in sales since April of 2020 driven by weakness in consumer electronics, jewelry, and hardware.
Still, the firm reiterated a Buy rating on Costco and kept it on its US 1 List of top picks. BofA continues to view Costco as well-positioned for the long term given its strong value proposition and price positioning, potential store growth acceleration given excess demand, competitive advantages afforded by COSTâs unique sourcing model, stable & rising EBITDA margins despite volatile gas prices, earnings support from a potential future membership fee increase, and attractive valuation.
Shares of Costco (COST) fell 2.70% in premarket trading on Thursday.