Costco maintains stable revenue growth for August 2024 📊

6:36 PM 6 September 2024

Costco unveiled its monthly sales report. The company achieved revenues of $78.2 billion in August, a year-on-year increase of 7.1%. This growth continues the trend that the company has been on for the last six quarters, with an average revenue growth rate of 6.5%. 

Looking at comparable sales, the company achieved 5% revenue growth in August, with retail sales in the US and Canadian markets up 4.7% and 4.5%, respectively. The company has seen continued strong growth in its e-commerce sales segment, where sales rose 23% year-on-year. 

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app

If comparable sales are adjusted for the impact of fuel sales and currency movements, growth in August would have been 7.1% y/y, and 23.3% y/y in the e-commerce segment. 

Costco remains trading at a significant premium to the rest of the US retail segment. The P/E ratio of 54.4x remains more than 2 times the value for the sector as a whole. On a P/BV and P/S ratio basis, the company also significantly outperforms its segment. 

This situation has been going on for a long time, and looking at historical forward P/E ratios, Costco's ratio has exceeded the sector by an average of 1.78x and the entire S&P 500 index by 1.86x. Even with the trend of strong premium to index, current Costco values implies strong overvaluation.

Comparison of forward P/E ratios against historical values (top chart), the sector (middle) and the S&P 500 index (bottom). Source: Bloomberg Finance L.P. 

Although since the beginning of 2018 it has presented a return of 365% (compared to the sector's return of 114%) it is worth remembering that trading in the area of such high ratios exposes the company to potentially greater volatility in the event of disappointing post-performance data. 

 

 

Share:
Back
Xtb logo

Join over 1 000 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
test_cookie cc 25 January 2024
adobe_unique_id cc 1 March 2025
__hssc cc 8 September 2022
SESSID cc 2 March 2024
__cf_bm cc 8 September 2022
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 30 May 2024
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
__hstc cc 7 March 2023
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 7 March 2023

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language