Costco 1Q Results Seen as Concerning Despite Beat -- Market Talk

Dow Jones12-16

1159 ET - Not everyone is optimistic about Costco Wholesale's performance, despite the retailer beating estimates for revenue in 1Q. Roth analysts Bill Kirk and Nick Anderson wrote that the 1Q results are cause for some concern, highlighting declining renewal rates, slowing year-over-year comparable traffic, and slowing incremental paid members, which may have actually turned negative quarter-over-quarter when adjusting for store openings. There's also risk from intensifying competition, they wrote, as BJ's Wholesale and Sam's Club accelerate store openings. Costco is also still trading at elevated valuations, they write, and faces a small headwind from declining household size and delayed household formation trends. They downgrade the stock to sell and lower their price target to $769 from $906. Shares fall 2.2% to $865.29.(elias.schisgall@wsj.com)

(END) Dow Jones Newswires

December 15, 2025 11:59 ET (16:59 GMT)

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