Costco December Sales Top Analysts’ Expectations [Video]

Costco Wholesale (COST) posted holiday sales figures Wednesday that blew past analysts’ expectations. 

The membership-based retailer reported net sales of $27.52 billion in the five-week period through Jan. 5, up 10% year-over-year. U.S. comparable sales improved more than 9% and e-commerce sales jumped 34%, with the latter “positively impacted by an estimated 15 percentage points, due to Thanksgiving / Black Friday / Cyber Monday occurring a week later this year.” 

JPMorgan analysts reiterated an “overweight” rating for the company’s stock, but lowered their price target to $1,065 from $1,090. Shares of Costco closed Wednesday trading at $927.37, making JPMorgan’s target a roughly 15% premium. The analyst consensus from Visible Alpha is $1,047.06.

The results were “strongly above” Street expectations, JPMorgan said, indicating an improving “consumer spending backdrop, particularly the upper-middle class and higher-income consumer.”

Citi analysts expect Costco stock to see “modest strength” following the December results, particularly as shares have fallen 7% since …