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Costco Adapts Product Mix, Drives 8.6% October Sales Surge
17 Nov
Summary
- Costco reported $21.75 billion in October sales, up 8.6% year-over-year
- Strategically shifted focus from seasonal to more enduring categories like apparel and home goods
- Analyst cites Costco's curated product mix, value proposition, and appeal to higher-income consumers
In the retail month of October 2025, Costco Wholesale Corporation (NASDAQ:COST) reported net sales of $21.75 billion, reflecting an 8.6% increase from $20.03 billion in the same period last year. This strong performance has reinforced the company's position as one of the best fundamentally strong stocks to buy, according to William Blair analyst Phillip Blee.
The analyst's bullish stance on Costco is largely driven by the company's strategic adaptations in its product focus. Notably, Costco has shifted away from a heavy emphasis on seasonal items and instead prioritized more enduring categories, such as apparel and home goods. This shift has been effective in maintaining customer interest and driving consistent sales.
Costco's ability to curate its product mix, coupled with its robust value proposition and appeal to higher-income consumers, has positioned the company well for the upcoming holiday season. Furthermore, the analyst believes that Costco's limited SKU assortment and skilled team of merchants have contributed to its market-leading status.
Despite some softer-than-expected performance in international markets, Costco's overall valuation is justified by its consistent performance in the consumer sector, according to the analyst. As the company navigates the evolving retail landscape, its adaptability and focus on delivering value to its customers have proven to be key drivers of its success.
