Costco Shares Defy Market Downturn on Strong September Sales

Costco Wholesale Corp. bucked the broader market trend Thursday, with shares climbing nearly 3% to $943 despite falling U.S. indexes. The warehouse retailer reported September sales growth of 5% year-over-year to approximately $26.6 billion, signaling potential early strength for the holiday shopping season.

Investors appeared to discount the slower growth rate compared to last September's 9% increase, recognizing unique circumstances that boosted 2023 results. "The retailer benefited from hurricane-related stockpiling and pre-strike inventory building last year," UBS analysts noted, framing the current figures as fundamentally sound.

The positive market reaction suggests traders view Costco's performance as indicative of resilient consumer demand. While September marks just the beginning of the fiscal quarter that will be fully reported in December, the results offered enough reassurance to lift shares during a down market session.