Costco's December Sales Stay Strong: What Is Driving COST's Momentum?

Core Insights - Costco Wholesale Corporation (COST) demonstrated consistent comparable sales growth in December, appealing to value-conscious consumers through competitive pricing and quality products [1][5] Sales Performance - For the five weeks ending January 4, 2026, Costco reported a 7% year-over-year increase in total comparable sales, with U.S. sales rising 6%, Canada 8.4%, and Other International markets 10.6% [2] - Adjusted for gasoline prices and foreign exchange, U.S. comparable sales increased by 6.3%, while Canada and Other International markets saw gains of 6% and 5.6%, respectively, leading to an overall growth of 6.2% in December [3] - Digitally enabled comparable sales surged 18.9% in December, or 18.3% when adjusted for fuel and currency impacts, continuing a trend of double-digit growth in online sales [4][7] - Costco's net sales for December rose 8.5% to $29.86 billion, up from $27.52 billion in the same period last year, following sales improvements of 8.1% and 8.6% in November and October, respectively [4] Membership Model and Market Position - Costco's membership-based model fosters customer loyalty, supporting consistent sales and stable margins even amid economic uncertainty [5] - The company's ability to leverage bulk purchasing and maintain competitive pricing is crucial in the current inflation-sensitive environment [5]