Costco is combining rapid digital penetration with its established warehouse network to fuel growth. Digitally enabled comparable sales climbed 20.5% in Q1 fiscal 2026, supported by a 24% increase in e-commerce traffic and a 13% rise in average order value, while January digital comps jumped 34.4%, contributing to 9.3% net sales growth for the retail month.

Digital initiatives like the Costco Digital Wallet and pre-scanning technology have improved checkout productivity by up to 20%, enhancing member engagement and driving higher basket sizes. These technology integrations are critical to bridging online and in-store experiences, elevating overall sales momentum.

Costco achieved a 3.1% increase in worldwide comparable traffic and a 3.2% rise in ticket size in Q1, while new warehouses opened in fiscal 2025 generated an annualized $192 million in first-year sales, up from $150 million two years ago. Management targets 28 net new warehouse openings in fiscal 2026 and aims for 30 or more annually thereafter.

YTD shares are up 18.1% versus 12.4% for the industry, reflecting strong performance. Costco trades at a forward P/E of 48.4 compared to the industry’s 33.7, with consensus forecasts calling for 8% sales growth and 12.2% EPS growth this year, followed by 7.1% sales and 9.3% EPS growth next year.