Costco Wholesale (COST 0.13%) has proven to be a resilient business over the past few years. Pandemic-induced spending led to incredible results, and even as inflation has been rising this year, the company’s numbers still looked strong. But in recent months, there have been cracks that have finally started to show. And the company’s first-quarter results have confirmed that Costco’s growth rate is indeed slowing down.
Does this mean the stock’s glory days are over and investors should expect a sell-off next year — or is Costco a good buy on the dip?
Sales growth is no longer in double digits
It wasn’t long after I pointed out Costco’s impressive growth streak that the company finally came back down to Earth and reported comparable sales growth of less than 10% in its monthly reports. After staying just above 10% for the month of August, Costco’s comparable sales numbers increased by just 8.5% the following month. And by…