Costco's sales resilience is giving Cramer a reason to feel better about the stock
Article excerpt
Costco's latest monthly sales report is giving Jim Cramer a new reason to feel better about the stock. On Wednesday evening, Costco reported overall same-store sales, also called comparables or comps, increased 11.4% in September. Excluding gas and currency fluctuations, core comps rose 7.6%. The pace of growth last month increased from August. Jim is especially encouraged by the fact that Costco's business is showing strength independent of gasoline sales, which can distort monthly results. "If you strip out gasoline, you got 8% growth [in the U.S.], and that's really terrific," he said during Thursday's Morning Meeting. Gas prices have been a major pain point for consumers due to Iran war-elevated oil prices. During last month's fiscal 2026 fourth-quarter earnings call, CEO Ron Vachris said Costco's gas business had a record year. While barely profitable, gas is a crucial part of the business because its below-retail prices draw customers to warehouse locations. More traffic at the pumps means the opportunity for more shoppers to go inside and buy things. The bite of sticky inflation is also being felt in other everyday items such as groceries. "When times get a little tougher, you go to Costco, and you save a lot of money." Due to its membership and buy-in-bulk models, Costco has always been the place to get lower prices. That's particularly important now as people have...
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On the call, management said the company's DoorDash and Uber Eats partnerships went nationwide.
