Costco's Sales Surge 6.3% in August: What's Behind the Winning Streak?

Costco Wholesale Corporation COST sustained its steady comparable sales growth in August, reflecting its ongoing strength with value-conscious consumers. The company’s competitive pricing and quality merchandise — available both in-store and through its expanding e-commerce platform — continue to resonate with shoppers navigating inflationary pressures.

Decoding Costco’s August Comparable Sales

For the four weeks ended Aug. 31, 2025, Costco reported a 6.3% year-over-year increase in total company comparable sales. Regionally, comparable sales rose 6.1% in the United States, 6.8% in Canada and 6.7% in Other International markets. This follows total comparable sales growth of 6.4% in July and 5.8% in June, signaling consistent momentum.

On an adjusted basis, excluding the impacts of gasoline price fluctuations and foreign exchange, U.S. comps climbed 6.7%, while Canada and Other International markets posted increases of 9.4% and 5.3%, respectively. Overall, total company comps, excluding these factors, grew 6.9%, following strong rises of 7% in July and 6.2% in June.

E-commerce also remained a bright spot, with comparable sales surging 18.4% or 18.3% when adjusted for fuel and currency headwinds. This builds on gains of 15.1% in July and 11.5% in June, reflecting sustained strength in Costco’s online channel.

As a result, Costco's net sales for August increased 8.7% to $21.56 billion, up from $19.83 billion in the same period last year. This follows a sales improvement of 8.5% and 8% reported in July and June, respectively.

What’s Fueling Costco’s Momentum?

Membership Power: Costco’s membership-based model, characterized by high renewal rates, fosters a loyal customer base that consistently returns.

Competitive Pricing: Bulk purchasing and efficient supply chain management enable the retailer to maintain sharp pricing, a significant advantage in a high-inflation environment.

Strong Value Proposition: Customers trust Costco for quality products at attractive prices, driving both in-store and online traffic.

Shares of this Zacks Rank #3 (Hold) company have advanced 7.5% over the past year, outperforming the Retail – Discount Stores industry’s 6.9% rise.

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The Zacks Consensus Estimate for Post Holdings’ current financial-year sales and earnings implies growth of 3.1% and 11%, respectively, from the year-ago reported numbers.

The TJX Companies, Inc. TJX, the leading off-price apparel and home fashion retailer in the United States and worldwide, currently carries a Zacks Rank #2 (Buy). TJX has a trailing four-quarter earnings surprise of 5.4%, on average. 

The Zacks Consensus Estimate for The TJX Companies’ current financial-year sales and earnings calls for growth of 5.4% and 7%, respectively, from the year-ago reported numbers.

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The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales and earnings suggests growth of 8.3% and 1.3%, respectively, from the year-ago reported numbers.

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This article originally published on Zacks Investment Research (zacks.com).

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