Costco's shares declined more than 7% after the retailer reported mixed Q2 earnings, missing profit expectations with adjusted earnings per share of $4.02, while revenue reached $63.72 billion—surpassing forecasts of $63.11 billion. Same-store sales slightly increased from 6.38% to 6.8%, and e-commerce grew by 20.9%. However, Costco faced challenges in the Canadian and other international markets, and is preparing for potential impacts from tariffs and inflation on consumer behavior. Despite this, the company plans to open 12 new locations by 2025, showing continued growth potential.
The tariffs are very fluid right now, so it's hard to give any predictions about what we can do, but our people are well-equipped to deal with anything coming our way, and we have great partnerships with our suppliers, CEO Ron Vachris said during the company's earnings call.
Costco's Q2 revenue came in at $63.72 billion, slightly beating analyst estimates for $63.11 billion, and overall same-store sales were up.
One advantage Costco has over some other retailers is its popular membership, whose fees make up more than 70% of its operating profits.
Costco announced it expects to open 12 new stores across the nation in 2025, including seven locations in March and April.
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