COST Costco reported Q3 FY25 revenue of $63.2 billion, up 8% year-over-year and slightly ahead of estimates by $0.1 billion. Earnings per share came in at $4.28, beating expectations by $0.05. Comparable store sales rose 8% overall and 7.9% in the U.S., while online sales surged 15.7%. Membership fee income climbed 10% to $1.2 billion, underscoring strong customer loyalty. Costco continues to outperform competitors like Walmart and Target, gaining market share in both brick-and-mortar and online channels. The retailer now operates 905 warehouses worldwide, with 8 new locations added this quarter, and is enhancing convenience with longer hours for discounted fuel.
Although new tariffs present challenges, Costco is managing well by adjusting supply chains—sourcing more products domestically and avoiding high-tariff countries. Even with rising costs, the company has cut prices on essentials like eggs and butter, absorbing the hit to margins in order to maintain member value. This strategy helps justify the stock’s premium valuation, trading at 56 times forward earnings. So far, Costco continues to earn investors’ confidence.
COST Costco Reports Strong Q2 Revenue Growth, Despite EPS Miss
Costco reported a 9% year-over-year increase in Q2 (February quarter) revenue, reaching $63.7 billion and surpassing expectations by $640 million. Adjusted comparable sales rose 9%, with e-commerce growing 22%. US comparable sales outpaced both Walmart and Target, increasing 9%, while membership fee income grew 7% to $1.2 billion. However, EPS of $4.02 fell short of estimates by $0.09, partly due to foreign exchange headwinds. Strong customer traffic and a 90.5% global renewal rate continue to underpin Costco’s premium valuation, with management noting stable consumer demand and increased spending on food at home.