Costco Reports Slowing Underlying Sales Growth for Three Consecutive Months
Costco Wholesale (COST) has seen a slowdown in its underlying sales growth over the past three months, despite strong quarterly earnings and comparable sales figures. In fiscal Q4 2026, Costco reported a 9.4% increase in comparable sales and a 15% rise in EPS to $6.75. However, monthly data since May has shown declining adjusted comparable sales growth rates—from 8% in May down to 5.4% in August (excluding gas and currency effects). Calendar shifts contributed slightly to the slowdown but did not fully explain it. The company's CFO noted a consistent range of 6-7% for adjusted comparable sales over the past year, though the trend has been downward since spring. The upcoming September report on October 7 will be closely watched as potential calendar tailwinds and an easier comparison may provide clarity about whether the slowdown is stabilizing or continuing. While customer traffic increased by 3.3% in Q4 (up from previous quarters), spending per trip slowed to a growth rate of 3.3%, down from 4.2%. This suggests that while members are shopping more frequently, they're not increasing their average basket size as quickly.
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