Charles HayesThursday, Jul 10, 2025 1:51 am ET

36min read

The global economy is teetering on the edge of a slowdown, with inflation, trade tensions, and geopolitical risks casting shadows over consumer spending. Yet Costco Wholesale (NASDAQ: COST) has emerged as a rare bright spot, defying stagnation in mature markets through relentless international expansion and e-commerce dominance. With total sales growing and —alongside —Costco is proving that its membership-driven model is uniquely equipped to navigate macroeconomic headwinds.

Costco's were bolstered by robust performance in regions beyond its U.S. stronghold. , including Mexico, Taiwan, and South Korea, delivered (adjusted for currency fluctuations), with local currency performance far outpacing reported figures muddied by foreign exchange headwinds. The company's aggressive —half of which are outside the U.S.—signal a long-term bet on markets like Asia and Latin America, where rising middle classes and brand loyalty to the “Costco value” are fueling demand.

While peers struggle with declining foot traffic and margin pressures, Costco's shares have outperformed the retail sector by a wide margin, reflecting investor confidence in its global playbook.

Costco's online sales have become a critical growth lever, with e-commerce comparable sales surging (and Costco Next43 million Q2 visits**, solidifying its role as a hub for member engagement.

Despite headwinds like and inflation in fresh food categories, Costco's global sourcing network and supplier relationships have kept margins intact. The company's decision to —including diapers and olive oil—has reinforced its value proposition, while wage increases for U.S. workers have not derailed efficiency gains. CFO Gary Millerchip noted that , a testament to operational discipline.

Wall Street analysts have consistently rated Costco a , citing its and disciplined capital allocation. The company's and plans to open warehouses in underserved markets like Vietnam and Poland suggest further upside. As CEO Ron Vachris emphasized, “Costco's agility in managing tariffs and inflation is unmatched,” with its private-label strategy and bulk purchasing power insulating it from cost pressures.

Costco's and underscore its ability to thrive where others falter. With e-commerce and international markets driving and a balance sheet capable of funding new warehouses and technology investments, the stock remains a top pick for investors seeking durable returns. Even as the U.S. market faces stagnation, Costco's global flywheel ensures it will continue to outpace peers—a compelling case for a buy rating.

In a world of uncertainty, Costco's formula is clear: expand where growth is, digitize what can't be touched, and never lose sight of the member. The results speak for themselves.