Costco's DoorDash Partnership Won't Impact Upcoming Q4 Earnings Report
Costco (NASDAQ:COST) launched a same-day delivery partnership with DoorDash (NASDAQ:DASH), but the deal came too late to influence its fiscal fourth-quarter earnings report, scheduled for September 24. The quarter ended in early September before the service became available, meaning it will not contribute to sales or profit figures. Despite this, Costco's digital business continued strong growth, reporting a 21.5% increase in digitally enabled comparable sales and a 37% rise in e-commerce traffic during Q3. The partnership is seen as a strategic move against competitors like Walmart (NYSE:WMT) with its Walmart+ service and Amazon (NASDAQ:AMZN), which offers same-day delivery through Prime memberships. Costco's membership model remains central to its earnings, with 82.9 million paid members in Q3 generating $1.37 billion in fees—a 10.7% increase year-over-year. The stock is currently trading at a high price-to-earnings ratio of 45x and has shown volatility following recent reports. A modest earnings beat led to nearly a 4% drop after Q3, highlighting the sensitivity around membership growth expectations.
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Topics: costco digital sales growth doorDash partnership membership renewals