Costco misses on earnings as it faces cautious consumers, tariff threats
Brooke DiPalma · Senior Reporter
Updated Thu, March 6, 2025 at 4:23 PM CST 3 min read
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Costco (
COST) reported mixed results for its fiscal second quarter as shoppers remain cautious about their spending.
Adjusted earnings per share came in at $4.02, compared to Bloomberg consensus estimates of $4.11. Revenue of $63.72 billion slightly beat expectations of $63.01 billion.
Overall same store sales jumped 6.80%, versus the 6.38% expected, though it fell short of estimates in Canada and other international markets. Same store sales excluding fuel and foreign exchange impact is up 9.1%.
"Our operations and merchandising teams did a fantastic job in the quarter, delivering strong operating results despite the uncertain macro environment," CEO Ron Vachris said on its earnings call.
Costco shares are slightly falling in after-market trading after releasing the results. Year to date, its stock is up over 12%, outpacing the nearly 3% decline for the S&P 500 (
^GSPC).
Shares of its peers are also outperforming as consumers seek the biggest bang for their buck. BJ's (
BJ) shares are up 28% this year, while Walmart (
WMT), which owns Sam's Club, is up 5.6%.
On Thursday morning, BJ's beat the Street's expectations on earnings and same store sales, with a slight miss on revenue. CEO Robert Eddy attributed the results to strength in traffic, increased basket sizes, and strong member engagement.
Shares of Kroger (
KR), which is
facing a CEO change and the fallout from its failed merger with Albertsons (
ACI), is still up nearly 3% year-to-date.
It reported fourth quarter earnings that matched estimates, with a beat on same store sales and a slight miss on revenue. Digital sales fueled the growth, followed by its delivery network and health and wellness.
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The earnings breakdown
Here's what Costco shared in its fiscal second quarter results, versus Bloomberg consensus estimates:
Revenue: $63.72 billion versus $63.01 billion
Adjusted earnings per share: $4.02 versus $4.11
Total company comparable sales growth: 6.80%, versus 6.38%
- US same-store sales growth: 8.30%, versus 6.22% yay!
- Canada same-store sales growth: 4.60%, versus 4.73%
- Other international sales growth: 1.70%, versus 4.00%
E-commerce growth: 22.9% versus 15%
Membership fee revenue: $1.19 billion versus $1.22 billion