Costco Wholesale Corporation Website

Costco Wholesale Corporation

NasdaqGS-COST

Company Overview

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. It offers branded and private-label products in a range of merchandise categories. The company offers sundries, dry groceries, candies, coolers, freezers, liquor, and tobacco and deli products; appliances, electronics, health and beauty aids, hardware, garden and patio products, sporting goods, tires, toys and seasonal products, office supplies, automotive care products, postages, tickets, apparel, small appliances, furniture, domestics, housewares, special order kiosks, and jewelry; and meat, produce, service deli, and bakery products. It also operates pharmacies, opticals, food courts, hearing-aid centers, and tire installation centers, as well as 636 gas stations; and offers business delivery, travel, same-day grocery, and various other services online in various countries. As of August 29, 2021, the company operated 815 membership warehouses, including 564 in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in South Korea, 14 in Taiwan, 12 in Australia, 3 in Spain, 1 in Iceland, 1 in France, and 1 in China. It also operates e-commerce websites in the United States, Canada, the United Kingdom, Mexico, South Korea, Taiwan, Japan, and Australia. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.

  • Name

    Costco Wholesale Corporation

  • CEO

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  • Website

    www.costco.com

  • Sector

    Consumer Staples Distribution and Retail

  • Year Founded

    1976

Company Statistics

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Bulls Say

  • Executive membership penetration continues to rise (11% higher than a decade ago), lifting the profitability of Costco’s recurring fee base and merchandise sales, as these members spend 3 times more on average than a basic member.

  • Kirkland Signature’s 33% sales penetration strengthens Costco’s brand equity while providing margin accretion in staple categories.

  • International warehouses in South Korea and Taiwan are producing among the chain’s highest sales volumes, suggesting durable global demand and that its brand power is resonating across borders.

Bears Say

  • Expansion into markets with stricter labor laws and zoning restrictions, such as parts of Europe, could slow Costco’s growing footprint and ability to further replicate its US model.

  • A decline in membership renewal rates (amid constrained consumer spending), currently around 90%, could weaken Costco’s most durable profit engine and its ability to reinvest in prices without impairing operating margins.

  • Digital sales remain at 7% of revenue, and continued underinvestment in e-commerce and last-mile fulfillment could cause Costco to lag peers in higher-margin discretionary categories.

Source: Morningstar Analysis - Dec 12, 2025

What's happening

Nov 15, 2025 - Dec 17, 2025

Costco Faces Significant Challenges Amidst Competitive Pressures and Investor Skepticism

  • Roth Capital downgraded Costco from "Neutral" to "Sell," raising concerns about membership growth.
  • Despite strong fiscal first-quarter results, investor reactions were mixed due to future performance uncertainties.
  • Social media sentiment reflected bearish expectations for continued declines in share value amid market volatility.

Over the past month, Costco Wholesale Corp (COST) has experienced a notable decline of 6.8%. This underperformance is stark when compared to the S&P 500's return of 1.3%, resulting in an underperformance of -8.1% relative to the index. Furthermore, within the Consumer Staples sector, COST lagged behind by 9.4%. The downward trend in COST's stock price was heavily influenced by several bearish events.

On December 15, Roth Capital downgraded Costco from "Neutral" to "Sell," citing concerns over slower membership growth and increasing competition from rivals like Sam’s Club and BJ’s Wholesale. Following this announcement, COST shares dropped approximately 3.4% that day due to investor disappointment over the absence of a special dividend that shareholders had anticipated earlier in December.

Despite reporting strong fiscal first-quarter results with earnings per share surpassing expectations at $4.50 and total revenue reaching $67.31 billion, shares still declined as Wall Street reacted with skepticism regarding future performance prospects amidst broader economic uncertainties such as government shutdowns and reduced SNAP payments affecting consumer spending trends.

Market sentiment remained negative as additional reports indicated robust comparable sales figures—showing an increase of up to 6.9%—but raised concerns about slowing U.S sales growth among investors during early December selling pressure on COST shares intensified further amid heightened bearish discussions on social media platforms reflecting expectations for continued declines in share value amidst overall market volatility impacting retail stocks negatively during this period.

Costco Wholesale Corp underperformed the Consumer Staples (XLP) sector by -9.4%.

NasdaqGS:COST