America’s Real Economic Indicator Just Dropped & It’s Absolutely FIRE (W/ a Side of $1.50 Hot Dogs)

“Not all heroes wear capes” - me everytime I see the samplers out at Costco… 

If you ever want to know how the U.S. consumer is actually doing, forget CPI, PCE, or whatever spreadsheet Jerome Powell is squinting at this week. Just check the Costco parking lot on a Saturday. And shocker, it’s still a friggin’ zoo. 

(Source: Giphy) 

In short, Costco just cleared Wall Street’s bar with room to spare, posting solid top- and bottom-line numbers and reminding everyone why this thing quite literally the G.O.A.T. Sales were up 8.2% year-over-year. Digital sales jumped a casual 20.5%. Net income clocked in at $2B. Translation: The receipts were printing. That said, the headline takeaway is boring in the best possible way: Americans are still buying in bulk, still renewing memberships, and still convincing themselves that a 12-pack of sweatpants was a responsible purchase because it was “only $19.99.” ‘Merica! 

(Source: CNBC) 

Additionally, what also stood out this quarter was how aggressively Costco’s digital side keeps growing. Website traffic up 24%. App traffic up 48%. Same-day delivery through Instacart, Uber, and DoorDash outpacing overall e-commerce growth. Add in Black Fridays tell, and Costco pulled in over $250M in non-food e-commerce sales in a single day. That’s TVs, electronics, jewelry, and whatever weird luxury item Costco decided to sell this year that makes you stop and say, “Why is this here… and why do I suddenly want it?” LOL. 

As for Costco’s ATM (read: Memberships), it still remains the real engine. Paid members were up 5%, while renewal rates are still hovering north of 90% in the U.S. and Canada. Call it loyalty, a cult, or just pain religion… regardless, once people are in the Costco ecosystem, they don’t leave. They just upgrade to the executive membership and start talking about it at parties. 

(Source: Giphy) 

“bUt wHaT AbOuT iNflATiOn?” 

Apparently, Costco has never heard of her. Why? Because they continue handling it the same way it always does with sourcing smarter, leaning on Kirkland (read: trolling Lululemon in the process), and quietly eating margin pressure without turning it into a shareholder sob story. Plus, they have gold sales that are still “bringing the boom” for revenue. 

“aNd tArRiFfS?!” 

Yeah, what about them? In case you’ve been too busy watching K-Pop Demon Hunter on repeat like I have (I have kids, ya know), instead of visiting America’s store… Costco’s dealing with them by suing the government, reshuffling suppliers, and continuing to sell $1.50 hot dogs out of pure spite. And as we all know, it continues to work. On the other hand, the stock definitely has been a little sleepy this year, down modestly while the broader market rips. But zoom out and it’s the same story it’s been for decades: steady growth, insane customer loyalty, and a business model that thrives when consumers feel squeezed and when they feel rich.

(Source: Reddit) 

So yeah… while everyone is collectively clenched with “AI bubble fears” (thanks, Oracle), rate cuts, and whether or not 50 Cent is truly in danger for what he “knows”, Costco is out here doing what it always does best. And that’s selling bulk toilet paper, printing cash, and accidentally becoming the most reliable macro signal in America. Until next time, friends… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.