Costco wholesale corporation (cost): a bull case theory

We came across a bullish thesis about the Costco Wholesale Corporation on Longyields Substack. In this article we will summarize the thesis of the bulls about the costs. The Costco Wholesale Corporation share was traded at 970.33 USD on July 11th^TH. According to Yahoo Finance, 55.04 or 47.85 were the cost of costs for the costs.

A smiling customer who wears sacks with articles from the company's wholesale trade.

The Costco Wholesale Corporation delivered a robust performance of 25 years and 25 quarters, whereby net sales increased by $ 81.96 billion and net profit by 13.2% to $ 1.903 billion by $ 13.2% to $ 1.903 underlining to be successful in the middle of macroeconomic challenges. Its core strength remains the membership model, the fees of 1.24 billion US dollars -an increase of 10.4% -that rose by high extension rates (92.7% in the USA and Canada) and an increase in paid household members to 79.6 million by 6.8%.

Executive members, who are now 37.6 million strong, accounted for 73.1% of sales. Costco opened nine new warehouses in the third quarter and plans ten more in the fourth quarter and reached 914 locations until the end of the year. The e-commerce segment rose by 14.8%, supported by increased traffic, higher order and improved logistics. Strategic partnerships, such as Affurm and Technology pilots, continue to strengthen its digital presence.

Despite inflation and tariffs, Costco kept his promise of value by absorbing costs and reducing prices for important objects, in contrast to peers such as Walmart and Target, which continued the costs to consumers. Kirkland Signature continued to achieve traction, and the strength of the private labels supported the margins. The gross margin was expanded by 41 basis points to 11.25%, supported by lower raw material costs, while the net result remained resistant despite a LIFO fee of $ 130 million.

The strategy to reduce the reduction in tariffs of Costco-The Creation of Bearing Chains, the increase in local procurement and the delay of price increases. Compared to competitors, Costco exceeded both sales growth and the price discipline. Management is still confident in its long -term prospects, with continued investments in physical expansion, digital skills and membership goods, making Costco an outstanding benefit in a volatile global retail landscape.

We used to cover A bullish thesis At the Costco Wholesale Corporation (cost) of Sanjiv in June 2025, which highlighted its membership strategy, the price discipline and its history, although the assessment concerns were reported. The share has copied about 7.7% since our cover. The thesis is still in the face of Costco's surgical strength. Longyield has a similar view, but emphasizes the resilience and pricing of the macros.