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Jim Cramer flags Costco membership challenge ahead of earnings
The retailer is set to report after the bell Thursday, after posting August net sales of $23.7 billion and 82.9 million worldwide paid memberships.
Jim Cramer said Costco Wholesale’s stock is “acting poorly” as the retailer prepares to report quarterly results after the bell on Thursday, focusing on what he described as difficulty in getting younger shoppers to renew memberships.
According to the segment aired September 18 on CNBC’s Mad Money, Cramer pointed to the shift in younger consumers toward shopping online, while he said Costco’s strength comes from the in-store experience and sample-driven format.
Ahead of the report, Costco entered the earnings period with preliminary momentum. Yahoo Finance cited August net sales of $23.7 billion, up 9.9% from the prior year period, and preliminary net sales of nearly $94.0 billion for the 16-week fourth quarter ended August 30, 2026, up 11.3% year over year.
The materials also highlighted that worldwide paid memberships rose to 82.9 million, supported by a 92.2% renewal rate in the United States and Canada. Still, the outlet noted the main risk is Costco’s elevated valuation and thin margin for error, including a prior quarter where it missed consensus EPS by one cent, with the stock trading at a trailing P/E ratio above 45x.