Costco (COST) reported mixed results on Thursday after market close as shoppers sought out value during the rollout of Trump’s tariffs.
Adjusted earnings per share came in at $4.28, beating estimates of $4.24. Revenue of $63.21 billion missed expectations of $63.31 billion.
Same-store sales jumped 8%, versus the 6.99% expected. The US market was up 7.90%, while Canada and other international markets grew 7.80% and 8.50%, respectively.
Costco stock was flat in after-hours trading. Year to date, shares are up 10% versus the S&P 500 (^GSPC), which has remained flat.
Though the company does not provide annual guidance, Wall Street expects annual revenue of $275 billion and adjusted earnings per share of $18.15, per Bloomberg consensus estimates. Same-store sales are expected to grow 7.21% for the year.
Here’s what Costco shared in its fiscal third quarter results, versus Bloomberg consensus estimates:
Revenue: $63.21 billion versus $63.31 billion
Adjusted earnings per share: $4.28 versus $4.24
Total company comparable sales growth: 8.00% versus 6.99%
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US same-store sales growth: 7.90% versus 6.79%
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Canada same-store sales growth: 7.80% versus 7.21%
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Other international sales growth: 8.50% versus 6.66%
E-commerce growth: 15.70% versus 15.00%
Membership fee revenue: $1.24 billion versus $1.25 billion
Results were consistent with same-store sales growth in recent quarters. Costco’s US sales also beat the 4.50% growth Walmart saw last quarter and Target saw, down 3.8%.
Per Placer.ai, Costco has been outdoing rivals Target and Walmart when it comes to foot traffic trends.
The Trump administration’s tariffs remain a key uncertainty for retailers. Recently, the US temporarily dropped tariffs on Chinese imports from 145% to 30% for 90 days, while so-called reciprocal tariffs were suspended for a 10% universal duty. Then, on Wednesday night, a US trade court blocked President Trump’s tariffs, which then was followed by an appeals court ruling allowing tariffs to stay in effect.
In Costco’s earnings call in March, CEO Ron Vachris said one-third of its sales in the US are imported from other countries, with less than half of those coming from China, Mexico, and Canada.
Most key food imports from Mexico and Canada were exempt from tariffs under the USMCA.
“In uncertain times, our members have historically placed even greater importance on the value of high-quality items at great prices, and our teams will continue to rise to this challenge by leveraging our global buying power, strong supplier relationships, and innovation,” Vachris added.
Prior to results, Telsey Advisory Group’s Joe Feldman said in a recent note that he still likes Costco “for its consistency, value offering, and high member loyalty.”
CFRA analyst Arun Sundaram said Costco’s increasing investment in its e-commerce business, like Costco NEXT and its partnership with Uber (UBER), as well as technology, personalization, and advertising, will drive shareholder value.
Meanwhile, Walmart’s executives warned that prices will increase on categories like baby strollers, electronics, and toys by the end of May and become more “pronounced” in June.
On a media call, Best Buy (BBY) CEO Corie Barry said price hikes were pushed through by mid-May.
“We have already made the pricing tweaks that we would expect up to this point,” she told Yahoo Finance. “Where there’s massively more increases in front of us that could change. But for right now, we feel like those prices have been passed on.”
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Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at [email protected].
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