Costco Q1 Sales Trends Offer Insight Into Holiday Season Strength

Core Insights - Costco Wholesale Corporation's latest sales data indicates strong consumer demand and member engagement as the holiday shopping season begins [1][4] Sales Performance - Net sales for the 12-week first quarter ending Nov. 23, 2025, reached $65.98 billion, an 8.2% increase from $60.99 billion in the same period last year [2] - Total comparable sales rose 6.4%, with the U.S. up 5.9%, Canada up 6.5%, and Other International markets up 8.8%, reflecting stable spending patterns [2] - For the four weeks ended Nov. 30, 2025, net sales were $23.64 billion, an 8.1% increase from $21.87 billion last year, with comparable sales increasing 6.9% [3] Digital Sales Growth - Digitally enabled sales rose 16.6% for November and 20.5% for the quarter, indicating strong online shopping adoption as the holiday season intensifies [3][8] Market Position - Costco's shares have declined 9.4% over the past year, contrasting with Dollar General's 63.9% increase and Target's 31.8% decrease [5] - Costco's forward 12-month price-to-earnings ratio is 43.72, higher than the industry average of 30.16, indicating a premium valuation compared to Target and Dollar General [6] Future Estimates - The Zacks Consensus Estimate for Costco's current financial-year sales implies a year-over-year growth of 10.3%, while earnings per share are expected to grow by 11.1% [9] - Current quarter sales are estimated at $67.28 billion, with a year-over-year growth estimate of 8.25% [10]