Why are Costco's 2025 stock gains negative?

Costco's stock performance in 2025 is attributed to its high valuation not aligning with slowing sales growth and the absence of immediate catalysts like future membership fee hikes.

What is Costco's sales growth rate in late 2025?

Costco reported around 8% revenue growth for fiscal 2025. Comparable store sales grew approximately 6.4% in November, showing a slight slowdown from previous months.

When did Costco last increase membership fees?

Costco last increased its membership fees in the U.S. and Canada late last year (2024), which contributed to a 14% jump in fiscal Q4 2025.

Home / Business and Economy / Costco Stock Stumbles Despite Solid Sales

Costco Stock Stumbles Despite Solid Sales

7 Dec

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Summary

Costco's stock has underperformed the S&P 500 in 2025.
Revenue and comparable sales show solid, yet slowing, growth.
A recent membership fee hike's impact is already reflected.

Costco Stock Stumbles Despite Solid Sales

Costco's stock has experienced a slight downturn in 2025, contrasting with the strong performance of the S&P 500. While the wholesale retailer continues to report robust sales figures, with revenue up around 8% for the full fiscal year, the growth rate has shown signs of deceleration. Fourth-quarter comparable sales growth slowed compared to the full-year rate, and November's monthly sales growth was marginally weaker than October's, indicating a potential cooling trend.

The company's valuation is a significant point of discussion, with its price-to-earnings ratio appearing high when compared to faster-growing technology firms. Investors may be questioning if the current sales trajectory justifies the stock's premium. A key profit driver, membership fees, saw a substantial 14% jump in fiscal Q4 following a recent increase in U.S. and Canada dues. This hike has now been lapped, presenting a challenging comparison for the upcoming year.