Why Costco Stock Dropped Today

Costco Wholesale (NASDAQ: COST) slid 2.6% through 10:05 a.m. ET Thursday after reporting same-store sales (SSS) for November and Q1 last night -- and yet, the news wasn't bad.

For the four weeks ended Nov. 30, Costco grew its net sales 8.1% to $23.6 billion. Sales for the 12 weeks preceding that date were $66 billion, up 8.2%. And sales for the entire first fiscal quarter 2026 were $72 billion -- also up 8.2%.

Image source: Costco.

Costco minus gas

One of Costco's most popular features is its in-store gas stations, offering cheaper-than-retail prices and the potential for 5% cash back with a Costco credit card. Costco figured out that consumers might come for cheap gas, and do some shopping after visiting the pump -- or they might come to stock up on groceries, and fill up the tank on the way home.

Either way, it's greater sales for Costco.

Subtract gasoline sales from Costco's same-store sales numbers, and the SSS number was 0.5% lower for the month of November, and 0.1% lower for all of Q1 -- but the same for the last 12 weeks. So basically, Costco got a bit of a boost from gas sales in November, but overall it was a wash.

Is Costco stock a sell?

Long story short, there's not a whole lot of logic to investors selling off Costco stock today. Analysts have been forecasting 8% sales growth for Costco in Q1 -- $67.1 billion -- and it looks like Costco's going to beat that number with a stick.

I won't say Costco is a cheap stock. I'd rarely, if ever, call a stock costing 50 times earnings cheap. But if you thought Costco stock was worth buying before its November SSS report, I see nothing in the news that should cause you to think otherwise today.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.