Kirkland Signature sales boost Costco's margin with global penetration and cost reduction

Kirkland Signature’s sales outpaced Costco’s overall growth in Q3 2025, boosting brand penetration by 50 bps. Local sourcing in regions like Asia led to a 40% price reduction and margin resilience. COST stock rose 12.1% in the past year, with EPS and sales growth estimates of 11.5% and 8.1%. Costco’s valuation is higher than industry average at a forward P/E ratio of 50.35 with a Value Score of D. Sales and EPS estimates for the current fiscal year suggest 8.1% and 11.5% growth, respectively. Costco holds a Zacks Rank #3 (Hold).

Costco’s stock performance has been strong, rising 12.1% in the past year, outperforming competitors like Dollar General and Target. The company’s forward P/E ratio is 50.35, higher than the industry average of 32.58, with a Value Score of D. Sales and EPS growth estimates for the current fiscal year are 8.1% and 11.5%, respectively. Costco is currently ranked as a Zacks Rank #3 (Hold).

Read more at Zacks Investment Research: Is Kirkland’s Global Penetration Powering Costco’s Margin Story? – July 7, 2025