Warehouse retailer Costco has released its June sales results, posting net sales of $29.24 billion, a 10.6% increase compared to the same period last year, continuing its trend of double-digit growth.

For the five-week retail month ending July 5th, the US market demonstrated the strongest performance with comparable sales rising 10.6%. The Canadian market saw a 3.7% increase, while other international markets grew by 4.7%. Overall, the company's comparable sales climbed 8.8%. The digital sales channel maintained its rapid expansion, with comparable sales surging 20.9%.

Rising gasoline prices provided a significant boost to the month's performance. The company indicated that gasoline price inflation contributed approximately 2.5 percentage points to the overall comparable sales growth, with the global average price per gallon of gasoline up 22% year-over-year. Excluding the impacts of gasoline prices and foreign exchange fluctuations, the overall comparable sales increase was 7.0%, with the US market at 7.6%.

Looking at the year-to-date performance for the 44-week period, Costco has accumulated net sales of $250.43 billion, representing a 10.1% year-over-year increase. The company's board also declared a quarterly cash dividend of $1.47 per share, payable on August 7th to shareholders of record as of July 24th.

Despite the robust sales figures, the pace of comparable sales growth in June moderated from the 12.5% recorded in May, raising some investor concerns. In response to this, Costco shares experienced a slight decline of approximately 1.5% in after-hours trading, closing at $939.34.

Several financial institutions maintain a positive outlook. Telsey Advisory Group reiterated its Outperform rating and $1,135 price target, noting that core merchandise comparable sales met expectations. Baird similarly upheld its Outperform rating, highlighting that the growth is broad-based and that the company continues to lead in the club retail segment and among its peers.