Core Insights - Costco Wholesale Corporation's partnership with Affirm to offer "Buy Now, Pay Later" (BNPL) financing is expected to enhance digital sales, particularly for high-value items like appliances and electronics, by reducing psychological barriers for budget-conscious consumers [1][3] Digital Sales Performance - E-commerce comparable sales increased by 14.8% in Q3 of fiscal 2025, with website traffic rising by 20% and average order values up by 3% [2][8] - Costco Logistics reported a 31% year-over-year increase in big and bulky e-commerce deliveries, indicating a strong demand in this segment where BNPL could further drive adoption [2][8] Competitive Landscape - Competitors such as Walmart and Amazon have already integrated BNPL options into their platforms, with Walmart focusing on seasonal items and electronics, while Amazon offers Amazon Pay Later to facilitate monthly payments [5][6] Financial Metrics - Costco's stock has performed well, with shares increasing by 11.4% over the past year, surpassing the industry's growth of 7.7% [7] - The Zacks Consensus Estimate indicates year-over-year sales growth of 8.1% and earnings per share growth of 11.6% for the current financial year [10] Valuation - Costco's forward 12-month price-to-earnings ratio is 48.96, which is higher than the industry average of 32.67, reflecting a Value Score of D [9]

Group 1: Core Insights - Costco Wholesale Corporation has launched a Buy Now Pay Later (BNPL) initiative in partnership with Affirm, targeting high-ticket categories through its e-commerce platform [1][7] - The BNPL option aims to reduce psychological barriers to purchase, particularly for younger and budget-conscious consumers, potentially unlocking new purchasing behaviors in large-item categories [2][3] - Costco's e-commerce comparable sales increased by 14.8% in the third quarter, with the BNPL initiative expected to further enhance this growth momentum [3][7] Group 2: Competitive Landscape - Competitors such as Walmart and Amazon have already integrated BNPL options into their platforms, with Walmart focusing on seasonal items and electronics, while Amazon offers Amazon Pay Later for easier access to higher-priced items [4][5] Group 3: Financial Performance and Estimates - Costco's stock has performed well, with a year-to-date increase of 14.8%, surpassing the industry's growth of 8.7% [6] - The Zacks Consensus Estimate indicates year-over-year growth of 8.1% in sales and 11.9% in earnings per share for the current financial year [9] - Costco's forward 12-month price-to-earnings ratio is 54.21, higher than the industry average of 34.39, indicating a premium valuation [8]