Value Shoppers Still Show Up, But Costco's Growth Hits Speed Bump

Core Viewpoint - Costco Wholesale Corp is facing challenges due to tariffs impacting apparel and home furnishings, with expectations of a slowdown in sales growth [1] Sales Performance - The company is anticipated to report a deceleration in total comparable sales (comps) for March to 2.5%, down from 7.7% last year [1] - Traffic is expected to increase by 2.5% compared to 7.2% last year, as consumers seek value [3] Digital Sales and Pricing Impact - Digital sales growth is projected to slow to 5%, a significant drop from 28.3% last year [3] - Gas prices have declined by high single digits in March, contributing to a headwind of approximately 80 basis points [2] - Strength in the U.S. dollar may add an additional headwind of around 170 basis points [3] Product Categories - Non-food sales are expected to outperform, particularly in discretionary categories like gift cards [4] - Food & Sundries and Fresh Foods sales are anticipated to remain solid due to favorable at-home consumption and a value-focused assortment [4] Stock Performance - Shares of Costco Wholesale declined by 2.73% to $942.91 at the time of publication [4]