Costco (COST) Stock Climbs Higher After Strong January Sales Report

TLDR

• Costco posted $21.33 billion in January sales, marking a 9.3% year-over-year increase
• Comparable-store sales grew 7.1% with digital sales jumping 34.4% in January
• Stock has gained 13.6% in 2026 after declining 5% throughout 2025
• Roth MKM analyst maintains Sell rating, warning of stockpiling reversal in February
• Wall Street consensus remains Strong Buy with average price target of $1,069

Costco Wholesale shares rose 1.2% in extended trading Wednesday following the release of January sales data. The warehouse retailer reported $21.33 billion in sales for the four-week period ending February 1, 2026.

The 9.3% sales increase topped December’s 8.5% growth rate. Comparable-store sales climbed 7.1%, slightly ahead of the prior month’s 7% gain.

Customer traffic showed positive momentum across all markets. Worldwide foot traffic increased 2.4%, while U.S. locations saw visits rise 2.2%.

Costco Wholesale Corporation, COST

Regional results highlighted strong international performance. U.S. comparable sales grew 5.8%, but Canada led with 11.4% growth. The Other International segment posted 9.5% gains despite headwinds from holiday timing.

The shift of Lunar New Year and Chinese New Year to February created a temporary drag. This timing difference reduced the international segment by approximately 4% and overall sales by 0.5%.

Digital Channel Powers Growth

E-commerce delivered the month’s standout performance. Digitally-enabled comparable sales soared 34.4%, dramatically accelerating from December’s 18.9% increase.

After removing the impact of gasoline prices and currency exchange rates, comparable sales still grew 6.4%. The strong results have boosted investor confidence following a challenging 2025.

COST stock fell 5% last year while the broader S&P 500 rose 17%. Pressure came from higher tariffs, stretched valuations, and weakening membership renewal rates.

Stock Rebounds in 2026

Shares have reversed course in early 2026 with a 13.6% gain year-to-date. Two straight months of accelerating comparable-store sales growth have attracted buyers back to the stock.

The after-hours move pushed shares 1.5% higher following the monthly sales release. Market reaction suggests investors view the acceleration as sustainable.

Analyst Skepticism Persists

Roth MKM analyst Bill Kirk maintained his Sell rating on COST stock with a $769 price target. Kirk acknowledged that slowing traffic was offset by higher transaction values.

However, he attributed the sharp e-commerce jump to winter storm stockpiling. Kirk expects demand to normalize in February as the weather-related surge fades.

Despite the bearish call, Wall Street remains bullish overall. The consensus rating stands at Strong Buy based on 19 Buy ratings, four Holds, and one Sell. The average price target of $1,069.11 implies 9.3% upside potential from current levels.

Shares traded higher in late Wednesday trading on the positive sales momentum.

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