Costco Tops DEI-Friendly Brands as LGBTQ+ Spending Rises 70%; Valuation at 49x
COST•A recent diversity and inclusion survey found 70% of LGBTQ+ consumers increased purchases at brands viewed as inclusive, with Costco among the top beneficiaries. Costco's membership model and same-store sales gains face valuation pressure as its stock trades at roughly 49x earnings against 9–10% expected annual growth.
1. Survey Reveals LGBTQ+ Spending Shifts
A new diversity and inclusion survey found 72% of LGBTQ+ consumers reduced purchases from companies perceived as scaling back inclusion, while 70% increased spending at brands seen as upholding DEI commitments.
2. Costco Emerges as Top Beneficiary
Costco ranked among the top firms benefiting from the spending shift, with roughly 70% of LGBTQ+ consumers reporting increased purchases at the warehouse retailer due to its perceived inclusivity.
3. Valuation Pressure Despite Sales Strength
While Costco’s membership-driven model drives steady same-store sales growth, the stock trades at about 49x earnings against projected 9–10% annual growth, introducing potential valuation risk for investors.
