Costco Stock Dips After Hours Despite Strong Q1 And Holiday Momentum - Retail Bulls Eye Rally Next Week

• Top sales categories outside of food included pharmacy, jewelry, tires, small electric, and apparel, the company said. 
• Costco said on Thursday that its ecommerce site traffic rose 24% and average order value on ecommerce increased 13%.
• The company also witnessed a strong start to the holiday season which kicked off with Black Friday in late November.

Shares of retailer Costco (COST) slipped 0.8% after hours on Thursday despite its first quarter revenue and profit beating Wall Street estimates on rising digital sales.

The company reported adjusted earnings per share of $4.50, above an analyst estimate of $4.27, according to data from Fiscal AI.

Revenue for the three months came in at $67.31, above the $67.12 billion expected by Wall Street, and above the $62.15 billion reported in the corresponding quarter of 224.

Same-store sales, excluding gas, rose 6.4% for the quarter ended November 23. Top sales categories outside of food included pharmacy, jewelry, tires, small electric, and apparel, the company said.

Digital Sales Growth

Costco said that its ecommerce site traffic rose 24% and average order value on ecommerce increased 13%, thanks to improvement to search capability and improved product display pages.

The company also noted a strong start to the holiday season which kicked off with Black Friday in late November. The company reported net sales of $23.64 billion for the retail month of November, an increase of 8.1% from $21.87 billion last year.

The company expects to end fiscal year 2026 with 942 warehouses, up from 914 as of the end of fiscal year 2025. It added about 7 in the first quarter.

As of the end of the quarter, Costco had 81.4 million total paid members, up 5.2% year over year and 145.9 million cardholders, up 5.1% year over year. Worldwide membership renewal rate was 89.7% in the first quarter and slightly higher at 92.2% in U.S. and Canada.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around COST stayed within the extremely bullish territory over the past 24 hours while message volume rose from 'high' to 'extremely high' levels.

A Stocktwits user highlighted the good earnings

Another expressed hopes for the stock rallying this week and next on“huge positives and growth.”

COST stock has dropped 3% this year and by about 11% over the past 2 months. 

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