Revenue Report Shows This Holding Is Up Bigly

On Wednesday, we shared comments from Albertsons ACI that the consumer remains cautious and price sensitive, and we saw that supporting the portfolio’s position in Costco COST. That thought was confirmed last night when Costco reported its December revenue soared 9.9% higher year over year to $27.52 billion. Powering that performance was the 9.9% adjusted comp sales figure for the month, led by the 9.8% comp sales figure for the U.S. that easily cleared the 5.2% consensus figure.

E-commerce sales also shot up nearly 36% compared to the year-ago print, but being the quality management team it is, Costco pointed out that the e-commerce figure was positively impacted by about 15 percentage points due to the timing of Thanksgiving to Cyber Monday in 2024. Even after that adjustment and its positive impact of about 1.5% on overall sales for December, it's rather evident Costco continued to take consumer wallet share during the month.

Entering 2025, Costco had 897 open warehouse locations compared to 871 exiting 2023, and management targets opening multiple new locations in the coming quarters. That, along with the phased-in impact of its September membership price increase, not only bodes well for that revenue line item, but it will also continue to be a key differentiator between Costo and other retailers.

For now, we’ll keep our $1,050 COST price target, but future events that could lead us to revisit it to include Costco’s 2025 dividend increase and upcoming monthly revenue reports.

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At the time of publication, TheStreet Pro Portfolio was long COST.