Retail chain Costco (NASDAQ:COST) delivered a robust performance in December 2023, boosted by a strong holiday season. COST reported net sales of $26.15 billion for the five weeks ending December 31, 2023, reflecting a 9.9% year-over-year increase. Following the news, COST stock gained about 1% in yesterday’s extended trade.
During the month, comparable sales rose by 8.5%, with U.S. comparable sales up by 7.3%. Adjusting for gas sales and foreign exchange fluctuations, the company’s total comparable sales showed an 8.1% increase.
Costco witnessed robust momentum in the food and sundries categories during December. Also, demand for gift cards and jewelry remained high. On the other hand, the performance of toys, sporting goods, and office supply products showed weakness. It is worth mentioning that the company’s e-commerce channel witnessed a 17.7% year-over-year increase in sales.
Is COST a Buy or Sell?
With 20 Buy and six Hold recommendations, Costco stock sports a Strong Buy consensus rating on TipRanks. Analysts’ average price target of $674.76 implies 4.07% upside potential from current levels. Shares of the company have gained 48.4% over the past year.
