Cramer Says Costco Struggles Yet Remains Strong

Costco’s June sales growth slowed, raising concerns about the retailer’s ability to maintain momentum amid a challenging economic backdrop.

Investors remain cautious.

June sales miss expectations

The membership‑only chain reported a 10.6% year‑over‑year increase in total sales, reaching $29.4 billion. That figure fell short of analysts’ forecasts. Excluding gasoline, U.S. comparable sales rose 7.6%, down from an 8.7% rise in May and beneath the 8%‑9% range anticipated by Mizuho.

All product categories reported modest deceleration, and the company’s stock slipped more than 4% in Thursday trading. Year‑to‑date, the shares are up roughly 5.5%, lagging the broader S&P 500’s near‑10% gain.

Analysts weigh in

Jim Cramer, speaking on a financial network, described the situation as “Costco’s in a funk,” noting the retailer’s exposure to a tough consumer environment. He added that a price below $900 per share would make the stock more attractive; at the time of his comments, the price hovered around $913.

Jeff Marks, a portfolio director, called Costco “a very defensive name” that can still deliver strong comparable sales despite economic headwinds. He pointed out that the recent slowdown explains the share decline, even as the company remains a solid player in the sector.

Research notes from Mizuho and Wells Fargo echoed the sentiment that the results were “fine” but fell short of what many investors hoped for. The retailer’s forward earnings multiple sits at 41 times, higher than Walmart’s 36.5 times and well above the S&P 500’s roughly 20.5 times.

Consumer trends and traffic

KeyBanc Capital Markets’ latest consumer survey, released earlier this week, highlighted weakening spending intentions and reduced financial confidence from March through June. High food prices, stagnant personal income, and raised gasoline costs were cited as primary concerns.

Those worries align with Costco’s own traffic and ticket data. Domestic store traffic rose 3.2% in June, about 0.5 percentage points slower than the previous month.

When gasoline, foreign‑exchange effects, and inflation are stripped out, average ticket growth eased to 3.7% from 4% in May. Despite the overall slowdown, ancillary businesses such as gasoline and pharmacy contributed positively.

Digital sales also performed well, with e‑commerce up 21.5% year over year, a slight increase from May’s 20.9% growth. The boost likely stemmed from the company’s online Membership Appreciation Days event held from June 22‑26.

Membership growth and outlook

Membership numbers, released quarterly, show a slowdown in growth. In the fiscal 2026 third‑quarter report, the retailer reported 82.9 million paid members, a 4.1% year‑over‑year increase, while the renewal rate held steady at 89.7%.

Costco will disclose its July sales on August 5, providing further insight into whether the recent deceleration is a short‑term blip or a sign of a longer‑term trend. Investors will likely watch the upcoming figures closely, especially given the premium valuation that leaves little margin for disappointment.