Shares of Costco (COST) fell more than 7% in midday trading on Friday after the wholesale retailer reported mixed second-quarter earnings results, missing profit estimates but beating on revenue, as the company braces for the impact of tariffs and inflation on consumer spending.
COST's second-quarter results report a 9% year-over-year revenue rise, with e-commerce comparable sales up 20.9%. Strong comparable sales gains across key markets.
Shares of Costco (COST -6.50%) traded 6.4% lower, as of 10:14 a.m. ET, after the large membership retailer reported mixed earnings results.
Costco Wholesale Corp COST shares are down on Friday, after the company reported mixed fiscal second-quarter results.
Costco Wholesale Corp (NASDAQ:COST) stock is down 4.9% to trade at $206.63 at last glance, after the retailer reported worse-than-expected profits for the second quarter due to rising merchandising costs.
Costco Wholesale Corporation (NASDAQ:COST, ETR:CTO) shares edged lower pre-market after the warehouse retailer's fiscal second quarter earnings fell short of expectations. The company's net income was $1.79 billion or $4.02 per share, short of expectations of $4.11 per share.
Costco's Q2-2025 earnings report showed solid revenue growth but a slight EPS miss, leading to a 1.2% stock dip in after-hours trading. Despite robust fundamentals, Costco's high valuation requires a 12.318% FCF/share CAGR for 20 years to justify its current price. The stock's P/E ratio is already high, limiting future multiple expansion and potentially hurting returns if it contracts.
“No other major retailer of this scale has succeeded in every country it entered,” one analyst noted.
Costco Wholesale Corporation (NASDAQ:COST ) Q2 2025 Earnings Conference Call March 6, 2025 5:00 PM ET Company Participants Gary Millerchip - EVP and CFO Ron Vachris - President and CEO Conference Call Participants Simeon Gutman - Morgan Stanley Michael Lasser - UBS Christopher Horvers - JPMorgan Scot Ciccarelli - Truist Securities Zhihan Ma - Bernstein Oliver Chen - TD Cowen John Heinbockel - Guggenheim Securities Rupesh Parikh - Oppenheimer Greg Melich - Evercore ISI Edward Kelly - Wells Fargo Chuck Grom - Gordon Haskett Kelly Bania - BMO Capital Markets Robert Ohmes - Bank of America Joseph Feldman - Telsey Advisory Group Mike Baker - D.A. Davidson Operator Ladies and gentlemen, thank you for standing by.
As the Trump administration rolls out — and rescinds — tariffs on Canada and Mexico, investors were anxious to learn how the policy would impact Costco. The company's reliance on membership fees for more than 70% of its operating profits gives it an advantage over competitors in an inflationary environment.
The headline numbers for Costco (COST) give insight into how the company performed in the quarter ended February 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Costco delivered strong quarterly revenue driven by increased store visits but missed profit expectations. CEO Ron Vachris said the company would work to minimize any cost increases from tariffs.