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Costco June sales show deceleration as gas tailwind fades
After stripping out gas and currency effects, Costco’s U.S. comps slowed to 7.6% in June from 8.7% in May.
Costco Wholesale reported June sales that grew year over year, but the reaction in its shares has been muted as the wholesale club’s underlying momentum decelerated. The company posted net sales of $29.24 billion, up 10.6% year over year, and it also declared a $1.47 per share dividend payable in August with a record date of July 24, according to MarketBeat Ratings.
MarketBeat Ratings said the latest comp trends point to a shift from the recent period when gas pricing helped drive traffic. With gas and currency effects stripped out, Costco’s U.S. comp sales rose 7.6% in June, down from 8.7% in May on a comparable basis. The outlet noted the overall move was even larger, with 8.8% in June versus 12.5% in May, reflecting how much fuel prices contributed earlier.
The analysis also flagged weakness outside the United States, with Canadian adjusted comps falling to 4.9% in June after 7.6% in April and 5.6% in May. It added that total international adjusted comps eased from 8.0% in May to 7.0% in June, raising concerns that international softness could limit upside even if U.S. comp sales improve.