Costco started off their new fiscal year strong, reporting Q1 acceleration in both net sales growth (+7.5%) and US comparable store sales (+7.2%) on December 12, 2024. Strength in eCommerce and key discretionary categories set up the company well for the upcoming holiday season, as Black Friday and Cyber Monday fall into Costco’s next fiscal quarter. The company also reported stable profitability despite various puts and takes including benefits from mix, co-branded credit card, and improved eCommerce margins offsetting gas deflation. We remain confident in the outlook for the business in 2025 as underlying demand and market share gains remain strong for the club channel as a whole.
*Note: Costco’s fiscal year runs from September to August, making their fiscal Q1 which ended November 24, 2024, comparable to other retailers’ Q3 results.
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