Investors are concerned about Costco’s renewal rates, but sales and earnings are growing, and North American membership renewal rates are high at 92%. Share price pullback creates a buying opportunity. Costco stock has declined 10% in the past year due to reallocation of investments and concerns about slipping renewal rates.

Costco’s growth has slowed, with membership sign-ups lower than usual. Management attributes this to younger shoppers signing up online and renewing at a slower pace. Despite this, Costco reported strong first-quarter results, including earnings per share of $4.50, revenue increase to $67.3 billion, and record Black Friday sales.

Costco’s first-quarter performance was impressive, with earnings beating estimates and comparable sales up. Despite lower renewal rates, the company continues to grow, with digital sales up 20.5% and customer loyalty high. Investors should consider the stock’s current dip as a buying opportunity for long-term growth.

While some investors focus on lower renewal rates, Costco’s performance remains strong, with increasing digital sales and customer engagement. With 81.4 million paid members and high renewal rates, Costco is still on a growth trajectory. The stock’s current decline presents a buying opportunity for those who see its potential.

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