Costco Earnings Due. These Retailers Retreat On Results; One Surges.

2026-03-05 19:49:45

Retail stocks were mixed Thursday amid a slew of earnings reports. Costco Wholesale slid out of a buy zone ahead of its afternoon results. Victoria’s Secret and BJ’s Wholesale retreated on their earnings. Burlington surged to the top of a buy zone Thursday.

For Costco Wholesale’s (COST) fiscal second-quarter results, FactSet expects earnings to increase 13% to $4.55 per share. Analysts see revenue rising almost 9% to $69.29 billion, on 6.3% same-store sales growth.

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Wall Street forecasts the number of Costco members will increase to 82.7 million, up from 81.4 million last quarter and 78.4 million last year, respectively.

Meanwhile, Costco sales appear to be accelerating, based on the wholesaler’s January metrics report on Feb. 4.

Costco reported $21.33 billion in net sales for January, marking a 9.3% increase from last year. For the first 22 weeks of fiscal 2026, sales grew 8.5% to $123.16 billion. Total company comparable sales were up 7.1% in January, and have increased 6.6% so far this year.

Digitally-enabled comparable sales spiked 34.4% last month. Digital comparable sales have increased 21.8% for the first 22 weeks of the fiscal year. However, Costco noted that the Lunar New Year and Chinese New Year negatively affected January’s other international sales and total company sales, by 4% and 0.5%, respectively.

Costco Stock Slides From Buy Zone

COST stock skidded 2.5% Thursday ahead of earnings to slide back below a buy point for a cup-with-handle base.

Shares first broke out above the 993 buy point on Feb. 4, but have since swung in and out of the buy zone.

Thursday’s early move put COST stock back below its 21-day exponential moving average, as shares pared their advance on the year to less than 14%.

Victoria’s Secret, BJ’s Wholesale Retreat

Victoria’s Secret (VSCO) led the sell-off for falling retailers on Thursday after announcing it initiated a strategic review of its DailyLook premium subscription service, which it considers a “noncore asset.”

The clothing maker reported a 6.5% increase in earnings to $2.77 per share adjusted, beating views for $2.52 per share. Revenue increased 8% to $2.27 billion, which cleared expectations for $2.23 billion.

Victoria’s Secret reported $85 million in tariff pressures for the year, including a $60 million hit in Q4. The company expects to record $160 million in tariff costs for 2026.

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VSCO stock tumbled 16% Thursday, undercutting its 50-day moving average and wiping out its stock gains since early December.

BJ’s Wholesale (BJ) retreated more than 2% Thursday on its outlook, falling near its 50-day moving average.

BJ’s reported a 3.2% increase in adjusted earnings on 5.5% revenue growth. Comparable club sales, excluding gas sales, grew by 2.6% from last year.

For 2026, BJ’s expects earnings to range from $4.40 per share to $4.60 per share adjusted, the midpoint below FactSet predictions for $4.66 per share. The midpoint for its comparable sales growth forecast was also slightly below estimates.

Burlington Jumps Out Of Buy Zone

Burlington Stores (BURL) stock jumped 6% on results Thursday, exiting a buy zone for a double-bottom base.

The off-price retailer topped expectations with a 20% increase in earnings on 11% revenue growth. Comparable store sales increased 4%, outpacing estimates for 2.8% growth.

Burlington expects full-year earnings to range from $10.95 to $11.45 per share adjusted, with the midpoint ahead of FactSet forecasts for $11.17 per share. The company guided for 8% to 10% total sales growth, which was in line with analyst views for an 8.8% increase. For the year, Burlington expects same-store sales to rise between 1% and 3%, while Wall Street sees comparable sales rising 2.3%.

BURL stock on Thursday climbed to 6% above the 298.02 buy point from a double-bottom base, just above the 5% buy range IBD recommends. Shares first broke out on Jan. 2. The stock has since swung above and below the buy range.

Burlington has advanced more than 8% so far this year.

You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison.

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