Costco Wholesale shares edged lower during Monday's session, falling approximately 0.8% to $993.42. This pullback followed a close above the $1,000 mark at the end of the previous week.
Market Awaits Economic Catalysts
The broader market exhibited choppy trading as participants braced for a series of influential economic releases. The January nonfarm payrolls report is scheduled for Wednesday, followed by the Consumer Price Index data on Friday. These figures are expected to shape expectations for the timing of Federal Reserve interest rate adjustments, with markets currently anticipating the first cut in June.
Analyst Action and Retail Sector Movement
Amid the cautious backdrop, Bernstein analyst Zhihan Ma increased the firm's price target on Costco to $1,155 from $1,146, maintaining an Outperform rating. The analyst noted the U.S. retail sector is at an "interesting juncture" with weak consumer sentiment, despite recent rotation benefits. Other major retailers also saw pressure, with Walmart down about 2.1% and Target falling roughly 1.2%.
Costco's recent business update showed January net sales rose 9.3% to $21.33 billion. Comparable sales increased 7.1%, while digitally-enabled comparable sales surged 34.4%. The company noted a timing shift related to Lunar New Year impacted international results and reported operating 924 warehouses globally.
Upcoming Checkpoints for Investors
The next significant events for Costco are its fiscal second-quarter earnings and February sales report, scheduled for release on March 5, followed by an earnings call. The company will also provide its March sales update on April 8.
