Costco’s stock rose ~$15 per share on Friday, December 12th, following Costco’s fiscal Q1 2023* earnings release on Thursday evening. Despite slowing growth driven by weakness in GM sales, Costco continues to grow sales in the U.S. and internationally, topline, and memberships. Costco’s margins remain compressed as they invest in price and right-size inventory and shipping capacity following volatility in the supply chain, yet they held off once again on raising member fees as members remain pressured by inflation and households continue to grow. eCommerce sales declined for the quarter. Commodity prices have begun to drop, which will likely lead to tougher price negotiations for suppliers. Overall Costco’s strategies and value proposition continue to prove effective with shoppers of all incomes and set them up for success in the face of uncertainty over the next year.

*Note: Costco’s fiscal year runs from September to August, making their fiscal Q1 (12 weeks from September to November), comparable to other retailers’ Q3 results.

Download Harvest Group’s full recap of the earnings call with unique takeaways for suppliers here:


Emalie Cockrell

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