Why Costco's Comparable Sales Strength Looks Broad-Based Globally

Costco Wholesale Corporation COST has demonstrated impressive comparable sales performance that is not confined to one geography but is broad-based across its global footprint. For the first quarter of fiscal 2026, the company reported total comparable sales growth of 6.4%, with the United States up 5.9%, Canada up 6.5% and Other International up 8.8%.

The January sales update further reinforces this geographic strength. For the four weeks ended Feb. 1, 2026, Costco reported a 7.1% year-over-year increase in total comparable sales. Regionally, comparable sales rose 5.8% in the United States, 11.4% in Canada and 9.5% in Other International markets. Over the first 22 weeks of fiscal 2026, the United States, Canada, and Other International markets posted comparable sales growth of 5.9%, 7.8% and 9.5%, respectively.

Contributing to the performance are increased shopping frequency and higher average transaction values. Global traffic rose 3.1%, while the average ticket size grew 3.2% during the quarter. This suggests that members are visiting warehouses more often and spending more during each trip.

The key catalyst is the robust performance of non-food categories and digital initiatives. Digitally enabled comparable sales grew 34.4% in January, following a 20.5% increase in the first quarter, reflecting a seamless member experience across platforms.

This sustained performance across geographies and product categories demonstrates that Costco’s broad-based sales strength is rooted in member engagement across its global platform rather than isolated regional drivers.

What the Latest Metrics Say About Costco

Costco, which competes with Dollar General Corporation DG and Target Corporation TGT, has seen its shares decline 4.9% in the past year against the industry’s growth of 10.3%. While shares of Dollar General have surged 90.6%, those of Target have dropped 7.3% in the aforementioned period.
 

From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 46.75, higher than the industry’s ratio of 33.34. COST carries a Value Score of D. Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 14.96) and Dollar General (21.11). 
 

The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 8% and 12.2%, respectively. For the next fiscal year, the consensus estimate indicates a 7.2% rise in sales and 9.3% growth in earnings.
 

Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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