Do Costco's February Comparable Sales Justify Its Premium Valuation?

Costco Wholesale Corporation COST maintained steady comparable sales growth in February, reinforcing the case for its premium valuation. The retailer’s competitive pricing, quality merchandise, expanding e-commerce business, and extensive warehouse network continued to attract value-conscious shoppers.

Sneak Peek into Costco’s Comparable Sales Performance

For the four weeks ending March 1, 2026, Costco reported a 7.9% year-over-year increase in total comparable sales. Regionally, comparable sales rose 5.2% in the United States, 12.8% in Canada and 17.9% in Other International markets. This follows total comparable sales growth of 7.1% in January 2026 and 7% in December 2025, indicating consistent momentum.

The Lunar and Chinese New Year fell on Feb. 17, 2026,, occurring 19 days later than the previous year. This timing shift had a favorable effect on February sales, increasing Other International sales by about 4% and boosting total company sales by about 0.5%.

On an adjusted basis, excluding the effects of gasoline prices and foreign exchange, U.S. comparable sales increased 6%, while Canada and Other International markets posted gains of 9.3% and 10.9%, respectively. Overall, total comparable sales, excluding these factors, grew 7% in February, following strong increases of 6.4% in January and 6.2% in December.

Digitally enabled comparable sales in February surged 21.8%, or 20.8%, when adjusted for fuel and currency impacts. This follows gains of 34.4% and 18.9% registered in January and December, respectively, underscoring sustained momentum in the company’s online channel.

As a result, Costco's net sales for February rose 9.5% to $21.69 billion, up from $19.81 billion in the same period last year. This follows a sales improvement of 9.3% in January and 8.5% in December.

What the Latest Metrics Say About Costco's Valuation

From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 46.86, higher than the industry’s ratio of 33.31. Although the premium multiple may appear elevated, investors often view Costco as a high-quality retail operator supported by resilient comparable sales growth, strong membership retention and expanding digital capabilities.

As long as Costco continues to deliver consistent sales growth and strengthen its omnichannel presence, its premium valuation could remain supported by investors seeking stable growth within the retail sector.
 

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Costco has seen its shares jump 6.8% in the past year compared with the industry’s growth of 20.4%. 
 

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The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings  per share implies year-over-year growth of 8.3% and 12.8%, respectively. For the next fiscal year, the consensus estimate indicates a 7.3% rise in sales and 9.6% growth in earnings.
 

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Costco vs. Peers – Walmart & Target

Walmart Inc. WMT reported a robust 4.6% comparable sales growth (excluding fuel) in its U.S. division for the fourth quarter of fiscal 2026, fueled by higher transaction counts and unit volumes. This performance at Walmart included a 24% surge in global e-commerce sales and notable market share gains within households earning more than $100,000. Furthermore, Walmart is aggressively investing in agentic commerce and supply chain automation to maintain its competitive edge. 

In contrast, Target Corporation TGT faced a marginal revenue decline of 1.5% in the fourth quarter of fiscal 2025 but projected a return to growth with a small increase in 2026 comparable sales. To achieve this, Target is focusing on reclaiming its merchandising authority and enhancing its loyalty ecosystem through programs like Target Circle 360. Early indications suggest Target is on the right path, as top-line performance accelerated significantly in February 2026.

Costco, Walmart, and Target currently have a Zacks Rank #3 (Hold).