Costco's Sales Rebound in September Looks Great on Paper. Why There's More to the Story. -- Barrons.com
Dow Jones2026/10/08 14:13By Mariapaula Gonzalez After a slowdown in same-store sales this summer, Costco Wholesale bounced back stronger in September. There is, however, more to the story. Comparable sales in the U.S., excluding impacts from gasoline prices and foreign exchange, rose 8% in September, up from 5% a year ago. The numbers in September mark a solid rebound from a summer slowdown. Same-store sales rose 7.6% in August, 6.9% in July, and 6.3% in June. Not since May, when Costco posted a 8.7% increase in sales, has growth been at this level. In July and August, comparable sales in the U.S. grew by 0.4% and 0.2%, respectively, from a year ago. A calendar shift in 2026 provided an extra tailwind. Labor Day fell one week later this year, which boosted sales in September by 50 basis points, Costco said. Management had previously said that a later Labor Day contributed to a slight weakness in sales in August. E-commerce sales grew 19% from the year ago, pointing to steady gains in online ordering and delivery. Higher foot traffic also contributed to strong sales in September. Stores in the U.S. saw shopper visits increase by nearly 4% in September, up from about 3% in August. While growth picked up in September, that figure has a bit of nuance. Mizuho analyst David Bellinger wrote Thursday that some of the lift came from one-off factors -- DoorDash and Uber Eats gift card sales -- and lower-margin categories such as the food court and pharmacy, which aren't as profitable as core retail merchandise. The firm has an Outperform rating and $1,065 price target on Costco stock. Costco stock rose 0.3% to $945.39 Thursday. Shares have risen nearly 10% this year, but the stock has pulled back almost 14% from its 52-week closing high of $1,094.32 on May 19, according to Dow Jones Market Data. Shares of rivals Walmart and Target rose 1.3% and 1.1%, respectively. Meanwhile, Amazon fell 0.5% Thursday. The strong performance in September signals that Costco's operations remain healthy, with performance meeting expectations. Investors will likely co
By Mariapaula Gonzalez
After a slowdown in same-store sales this summer, Costco Wholesale bounced back stronger in September. There is, however, more to the story.
Comparable sales in the U.S., excluding impacts from gasoline prices and foreign exchange, rose 8% in September, up from 5% a year ago.
The numbers in September mark a solid rebound from a summer slowdown. Same-store sales rose 7.6% in August, 6.9% in July, and 6.3% in June. Not since May, when Costco posted a 8.7% increase in sales, has growth been at this level.
In July and August, comparable sales in the U.S. grew by 0.4% and 0.2%, respectively, from a year ago.
A calendar shift in 2026 provided an extra tailwind. Labor Day fell one week later this year, which boosted sales in September by 50 basis points, Costco said. Management had previously said that a later Labor Day contributed to a slight weakness in sales in August.
E-commerce sales grew 19% from the year ago, pointing to steady gains in online ordering and delivery.
Higher foot traffic also contributed to strong sales in September. Stores in the U.S. saw shopper visits increase by nearly 4% in September, up from about 3% in August.
While growth picked up in September, that figure has a bit of nuance. Mizuho analyst David Bellinger wrote Thursday that some of the lift came from one-off factors -- DoorDash and Uber Eats gift card sales -- and lower-margin categories such as the food court and pharmacy, which aren't as profitable as core retail merchandise. The firm has an Outperform rating and $1,065 price target on Costco stock.
Costco stock rose 0.3% to $945.39 Thursday. Shares have risen nearly 10% this year, but the stock has pulled back almost 14% from its 52-week closing high of $1,094.32 on May 19, according to Dow Jones Market Data.
Shares of rivals Walmart and Target rose 1.3% and 1.1%, respectively. Meanwhile, Amazon fell 0.5% Thursday.
The strong performance in September signals that Costco's operations remain healthy, with performance meeting expectations. Investors will likely continue to watch and see whether that momentum can also translate to continuous membership growth.
Write to Mariapaula Gonzalez at mariapaula.gonzalez@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
October 08, 2026 10:13 ET (14:13 GMT)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
BUZZ - UBS raises its target price for Biogen due to the catalyst in its late-stage R&D pipeline; stock price rises
October 9 - ** Shares of pharmaceutical company Biogen (BIIB.O) rose 2.4% to $223.71 ** UBS raised its price target from $240 to $270 and reiterated a "Buy" rating ** Third-quarter revenue is expected to reach $2.69 billion, with earnings per share (EPS) at $2.11, both slightly above market consensus ** Third-quarter sales of Alzheimer's drug Leqembi are predicted to be $200 million, in line with market expectations, and the recently launched subcutaneous formulation is projected to become a key growth driver starting in 2027 ** Biogen is now more optimistic about ophthalmology drug Syfovre than it was at the time of acquiring Apellis (link), and is optimizing its commercialization strategy ** Late-stage clinical data for lupus drug litifilimab due later this year and data on cutaneous lupus erythematosus expected in the first half of 2027 are seen as key catalysts ** Furthermore, late-stage clinical results for kidney drug felzartamab, expected in the first half of 2027, are anticipated to provide further upside, and clinical trials by Eli Lilly (LLY.N) for presymptomatic Alzheimer's may produce positive spillover effects ** Including intraday fluctuations, the stock is up 26.3% year-to-date.
BUZZ - JPMorgan upgrades VF Corp to "Neutral," shares rise
On October 9, shares of clothing retailer VF Corp (VFC.N) rose about 3% to $14.90 after JPMorgan upgraded its rating from "Underweight" to "Neutral" while maintaining a price target of $18. The brokerage stated that VF's sales and profit in fiscal 2027 are likely to meet or exceed market consensus, with growth expected to be mainly driven by outdoor brands—The North Face, Timberland, and Altra. JPMorgan also noted that the decline in the Vans brand has been brought under control and that wholesale orders for spring 2027 offer "high visibility" for improved performance in the second half of the year. The company is still expected to achieve an operating profit margin of about 10% in fiscal 2029, driven by more full-price sales, better inventory planning, and a shift towards high-margin brands and premium products. Out of 25 brokerages, 8 have a "buy" or more bullish rating, 15 rate it as "hold," and 2 as "sell;" the median price target is $16, according to data compiled by LSEG. As of the previous trading day's close, the stock had fallen about 20% year to date.
University of Michigan October Consumer Sentiment Index falls to a five-month low, with the Current Economic Conditions Indicator hitting a historic low
The University of Michigan’s Consumer Sentiment Index for October dropped to 46.3, below the market expectation of 47.6. The component reflecting current economic conditions decreased to 44.7, setting a new historical low, while the expectations component edged up to 47.3, marking its first rebound since July. Consumers’ one-year inflation expectations rose to 4.7%, and five-to-ten-year inflation expectations increased to 3.5%. According to the survey director, consumers from different political parties agree that the economic outlook has weakened compared to the beginning of the year.
Crypto prices
More
