Costco Reports Strong September Sales Fueled by Hurricane Helene and Port Strike, Say Analysts

Costco reported impressive sales figures for September, with comparable sales increasing by 8.9%, a significant rise from August’s 7.1%. Analysts from Citi observed that this surge in sales was largely fueled by panic buying ahead of Hurricane Helene and a strike at east coast ports.

Management at Costco indicated that these events contributed approximately 150 basis points to overall sales growth, with the U.S. market experiencing a 200 basis point impact. According to Citi, while Costco anticipates that some of the boost from the port strike-related buying may taper off in the coming months, they believe the company has gained additional traffic as consumers turn to warehouse clubs for stocking up.

Citi also pointed out a noteworthy 22.9% rise in e-commerce sales, demonstrating robust consumer demand and expanded product offerings through Costco’s Next.com program. Despite these encouraging results, the firm maintained a Neutral rating on Costco’s stock, stating that although the company is well positioned to navigate the current market conditions, its valuation at around 31 times fiscal 2025 EBITDA suggests a balanced risk/reward scenario.

Additionally, Telsey Advisory Group reported a 7.6% increase in total traffic in the U.S., driven by consumers purchasing bulk items, even though many of these items were not directly related to the port strike. Non-food categories performed exceptionally well, with jewelry, gift cards, and home furnishings experiencing sales growth in the low teens. Food and sundries rose by high single digits, while fresh foods climbed by low double digits, as noted by Telsey.

Overall, Telsey commended Costco’s performance, emphasizing that the company executed well and gained market share while maintaining an Outperform rating on the stock.