Costco’s comparable sales growth was significantly inflated by high gas prices, with fuel-adjusted comps running roughly 4 to 5 percentage points below reported figures. COST shares fell more than 10% from their May 19 all-time high of $1,096 as gas prices retreated, breaking below the 50-day moving average in early June. Bulls point to Costco’s 90% membership retention rates as a durable growth driver, but the stock’s 46x forward earnings valuation leaves little margin for a slowdown.
Costco Wholesale CorpGas price retreat reduces fuel-driven sales boost, lowering comparable sales growth.