Costco Wholesale Corporation (NASDAQ:COST, XETRA:CTO) reported another strong month of growth in November, with net sales climbing 8.1% year-over-year to roughly $21.9 billion.
Jefferies analysts repeated their ‘Buy’ rating on the membership-based big box retailer, noting its November performance reflected “broad-based sales momentum” heading into the first quarter of fiscal 2026.
Core comparable sales, excluding the effects of fuel and foreign exchange, rose 6.4%, while total comps increased 6.9%.
Jefferies highlighted that both traffic and ticket were positive for the month, with global traffic up 3.8% and US traffic up 3.0%.
“The best-performing US regions were the Northeast, Midwest, and Southeast, while the best-performing international regions were Australia, Taiwan, and the UK,” the analysts noted.
Foreign exchange provided a modest overall tailwind of 0.4 percentage points to total company comps. However, FX impacts varied by geography. Canada saw a 0.7-point drag, while Other International markets saw a 3.6-point benefit.
Costco’s digitally enabled business also remained a standout, with core digital comps jumping 16.3% in November.
Jefferies wrote that strength was broad across merchandise categories. Food and Sundries posted mid- to high-single-digit comparable growth, led by candy and other core consumables. Fresh foods also rose mid- to high-single digits, supported by meat and bakery.
Non-foods delivered mid-single-digit comparable growth, with “strength in Jewelry, Tires, and Health and Beauty,” the analysts wrote.
Ancillary businesses, including pharmacy, food courts, and optical, comped high-single digits, accelerating from October.
Jefferies updated its model to reflect Costco’s actual Q1 net sales figure of $66 billion. The firm noted it now expects 2026 EPS of $20.17, up slightly from its prior estimate.
Jefferies has a $1,180 price target on Costco, which traded down 3.1% at $893 on Thursday afternoon.
The company will hand down its first quarter earnings report on December 11 after US markets close.