Jim Cramer Says Its 'Just Crazy' That Costco Sells Discounted Hermès Birkin In Chinese Warehouses: 'Love This Stock But...'

Core Insights - Costco Wholesale Corp. is selling authentic Hermes Birkin bags and select Chanel products at significant discounts in Chinese warehouses, with prices around $14,000, which is considerably lower than the typical market price [1] - The strategy of selling luxury items was first introduced during Costco's debut in Shanghai in 2019 and has generated viral demand among affluent Chinese shoppers [2] - In the first quarter of fiscal 2026, Costco reported revenue of $67.31 billion, exceeding estimates of $67.14 billion, and adjusted earnings of $4.50 per share, surpassing the consensus of $4.27 [2] Company Performance - Mizuho upgraded Costco's rating to Outperform from Neutral and raised its price target to $1,000 from $950, indicating a potential upside of about 17% [4] - Concerns regarding slowing membership and comparable sales growth were dismissed, with the firm noting that half of recent U.S. warehouse openings are "fill-ins" in strong markets, suggesting healthy underlying demand [5] - Jim Cramer indicated that Costco shares are becoming attractive again following these developments [5] Market Trends - Recent data from Bank of America shows record inflows into consumer staples, as investors shift away from tech-heavy trades, highlighting defensive names like Costco [6] - This trend reflects a broader investor strategy seeking safety amid deteriorating prospects for high-growth sectors [6]