Costco Wholesale Corp

Costco Wholesale Corp. (COST) was the second-largest contributor for the quarter, gaining 16% as the company benefited from two distinct tailwinds. In the first two months of the quarter, Costco’s consistent, membership-driven business model provided a defensive haven as investors rotated away from high-multiple technology stocks amid capex cycle concerns. Then in March, as the Iran conflict drove consumers toward value-seeking behavior, Costco’s warehouse model and unmatched value proposition attracted incremental traffic. Comparable store sales growth remained in the mid-to-high single digits year-over-year, membership renewal rates remained above 90%, and e-commerce penetration continued to accelerate. The company’s ability to compound through a variety of macro environments reinforced its status as one of the highest-quality retailers globally.

Costco Wholesale: COST was the third-largest contributor for the quarter, gaining 16% as the company benefited from two distinct tailwinds. In the first two months of the quarter, Costco’s consistent, membership-driven business model provided a defensive haven as investors rotated away from high-multiple technology stocks amid capex cycle concerns. Then in March, as the Iran conflict drove consumers toward value-seeking behavior, Costco’s warehouse model and unmatched value proposition attracted incremental traffic. Comparable store sales growth remained in the mid-to-high single digits year-over-year, membership renewal rates remained above 90%, and e-commerce penetration continued to accelerate. The company’s ability to compound through a variety of macro environments reinforced its status as one of the highest-quality retailers globally.