Costco Powers Past Wall Street Expectations, Boasts Double-Digit E-Commerce Gains

Sales Performance - Costco reported a 9.8% growth in December U.S. core sales, surpassing Wall Street's 5.2% estimate and JPMorgan's 6.7% forecast [1] - E-commerce sales surged 35.7% year-over-year, partly due to Black Friday sales booked in December because of a holiday calendar shift [1] - International operations showed strong performance with core comps climbing 10.3% in Canada and 9.8% across other regions [2] Consumer Trends - The shorter holiday season contributed to December's strong sales numbers [2] - Higher-income shoppers are driving improved consumer spending, particularly among the upper-middle class and higher-income segments [2][3] - Costco's ability to attract these high-income consumers is a key factor in its success [3] Product Categories - Fresh foods like meat and produce saw high single-digit growth [3] - Non-food categories, including jewelry, toys, and gift cards, experienced growth in the high teens [3] - Ancillary services such as pharmacy and optical rebounded, benefiting from a holiday lift [4] - Electronics, including TVs, showed sequential improvement [4] Future Outlook - JPMorgan analyst Christopher Horvers maintains an Overweight rating on Costco's stock with a price target of $1,065 [5] - Costco's unique ability to grow across its stores and geographies, along with its emerging advertising revenue stream, positions it as a standout in the retail industry [5] - The company's momentum is described as unstoppable, with growth rates unmatched by other scaled retailers except for Amazon [6] Global Consistency - Costco's success in every country it has entered is highlighted as unmatched by any other major retailer [2]