Costco Wholesale Corporation ( NASDAQ:COST , XETRA:CTO ) US comparable sales accelerated in October, prompting Bank of America to maintain its "buy" rating.
US comparable sales excluding gasoline price changes rose 8.1%, with growth improving from September on both a year-over-year and two-year stacked basis, BofA said.
Across the broader business, Costco's total sales increased 12.6% in the four weeks ended November 1, while comparable sales excluding gasoline price changes and currency effects rose 7.3%.
That companywide comparable sales growth included a 4.1% increase in traffic, versus September's 4.7%, and 3.1% growth in average spending on the same adjusted basis, versus 2.8%.
Digital growth strengthened more sharply, with digitally enabled comparable sales excluding currency effects rising 22.6%, up from 19.1% in September.
Merchandise category performance remained consistent, with nonfood comparable sales rising by a high-single-digit percentage, led by gift cards, sporting goods and housewares.
Costco's fresh food comparable sales grew by a mid- to high-single-digit percentage, supported by meat and bakery, while food and sundries rose by a mid-single-digit percentage.
Beyond those sales trends, BofA cited the retailer's value strategy and higher-income core customers as reasons for confidence in continued market share gains amid price sensitivity.
Regional performance was less uniform, as Canadian comparable sales growth, excluding gasoline price changes and currency effects, slowed to 3.5% from 4.9%, reflecting softer economic conditions, according to BofA.
Looking ahead, BofA said DoorDash and Uber Eats gift card sales could support comparable sales following September's nationwide expansion of same-day delivery partnerships.
