Costco has proven its mettle throughout the pandemic, outperforming during early stages of the crisis and more recently, even as peers like Walmart and Target have seen profits shrink due to inflation and excess inventory. Comparable sales adjusted in the fiscal year that just ended rose 10.6%, and its operating income increased 8% to $1.8 billion at a time when most of the retail sector is seeing earnings fall. Too much growth was priced in, and rising interest rates and recession fears caused an abrupt shift in market sentiment and valuations.