Costco shares fall over 4% as investors look past strong June sales

Costco shares dropped over 4 percent despite reporting strong June sales, with US comparable sales growth of 10.6 percent offset by weaker Canada comparable sales of 3.7 percent. Net sales for the first 44 weeks of the fiscal year stood at 250.43 billion dollars, up 10.1 percent year-on-year, though gasoline price deflation and foreign exchange acted as headwinds. Investors appeared to focus on the uneven regional split and high premium valuation rather than the solid headline growth.