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Key Takeaways
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Costco Wholesale sales rose 7% year-over-year in April, with traffic in its U.S. locations up 5%, the company said Wednesday.
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The increase is likely not a reflection of members' desire to stock up and avoid paying higher prices under tariffs, UBS analysts said.
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Instead, analysts believe members are doing a growing share of their shopping at Costco because it offers value and newness.
Costco’s sales rose 7% year-over-year in April as analysts said members did more of their shopping at its warehouses.
Costco Wholesale (COST) reported $21.18 billion in monthly sales, up from $19.8 billion last April, in a sales update on Wednesday. Comparable sales rose 5.2% year-over-year in the U.S., where traffic rose 5%, the company said.
Members are shifting more of their shopping to Costco as they seek out value, UBS analysts wrote in a Wednesday note.
Sales of food and sundries, including meat, baked goods and items from the cooler and deli selections, increased in the high single-digit percent range, the company said. Non-food sales, such as jewelry and home furnishing purchases, were up in the mid-to-high single-digit percent range, Costco said.
The uptick is unlikely to reflect members’ temporary desire to stock up on goods ahead of tariffs, given that Costco stocks many consumable goods, UBS analysts said.
“We think the company continues to deliver compelling value, quality, and newness,” UBS analysts wrote. “As a result, its customers continue to consolidate their shopping at this retailer."
Costco shares, about flat Thursday morning, have gained more than 30% over the past year.
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