2 Retail Stocks to Buy Before the Holiday Shopping Season
Key PointsAmazon's sales in last year's holiday quarter came in about 18% higher than in the third quarter.
As Thanksgiving falls on November 26, the retail world braces for the crucial weeks that follow, known as the holiday shopping season. For heavyweight retailers like Amazon and Costco, this period can significantly impact their annual performance.
Amazon, with its vast online marketplace, has consistently reported robust sales during this time. Last year, the e-commerce giant saw a 18% increase in fourth-quarter sales compared to the previous quarter. Two retailers stand out before the holiday frenzy: Amazon (AMZN) and Costco Wholesale (COST).
Both companies have shown consistent sales growth this year. However, their stocks have taken different paths. Amazon's shares remain below the record high they reached in early August, while Costco's stock has climbed about 8% so far in October, nearing $1,000.
Amazon's fourth quarter is particularly important. In 2025, the company's net sales soared to $213.4 billion, a 14% increase from the previous year and a sharp contrast to the third quarter's $180.2 billion. Operating income in Amazon's North America segment, which includes most of its store sales, rose by around 24% year over year to $11.5 billion in last year's fourth quarter.
Costco's fiscal first quarter spans 12 weeks, ending just before Thanksgiving, which makes its monthly sales reports the first public indication of the holiday season's impact. Last year, Costco's holiday quarter (fiscal second quarter of 2026) saw a 9.1% year-over-year increase in net sales to around $68.2 billion, with comparable sales (excluding gas price and foreign exchange fluctuations) growing by 6.7%.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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