Why Costco Stock Dropped Today

Core Viewpoint - Costco Wholesale reported solid sales growth for November and Q1, despite a slight decline in stock price following the announcement [1][4]. Group 1: Sales Performance - For the four weeks ending November 30, Costco's net sales increased by 8.1% to $23.6 billion [1]. - Sales for the 12 weeks prior to November 30 reached $66 billion, reflecting an 8.2% growth [1]. - Total sales for the first fiscal quarter of 2026 amounted to $72 billion, also up by 8.2% [1]. Group 2: Impact of Gas Sales - Excluding gasoline sales, same-store sales (SSS) for November were 0.5% lower, and 0.1% lower for Q1, while remaining unchanged for the last 12 weeks [3]. - Gas sales provided a temporary boost in November, but overall performance was balanced out [3]. Group 3: Market Reaction and Analyst Insights - Despite a 2.6% drop in stock price, analysts had anticipated an 8% sales growth for Q1, which Costco is expected to exceed [1][4]. - The current market cap of Costco is $409 billion, with a gross margin of 12.84% and a dividend yield of 0.55% [4]. - The stock is considered expensive at 50 times earnings, but there are no new concerns that would deter previous investors [5].