Costco Shares Fall 5% Despite 21% Surge in Digital Sales

Costco reported May sales growth of 14% to $24 billion, with digital sales up 21%, but shares dropped nearly 5% last week. Costco Wholesale (NASDAQ: COST) posted a 14% year-over-year increase in May sales, reaching $24 billion, driven by a 21% jump in digital sales and rec

Costco reported May sales growth of 14% to $24 billion, with digital sales up 21%, but shares dropped nearly 5% last week.

Costco Wholesale (NASDAQ: COST) posted a 14% year-over-year increase in May sales, reaching $24 billion, driven by a 21% jump in digital sales and record gas volumes. Comparable store sales rose 12.5% in May, with an 8% increase over the first 39 weeks of the fiscal year. Earnings for the third quarter surged 15% to $4.94 per share.

Despite the strong performance, Costco shares fell nearly 5% last week, erasing a brief post-report spike. Shares opened at $997 on June 5 after the May sales release but closed at $960. The decline coincided with broader market movements, overshadowing the retailer’s robust sales and earnings growth.

Gas sales contributed significantly to comp sales, accounting for a third of the increase. Digital sales maintained a 21% growth rate through the first 39 weeks, reinforcing Costco’s omnichannel strength.

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