Costco Wholesale Corp. reported mixed second-quarter results, with shares slipping after hours on Thursday. The membership warehouse retailer warned that shoppers could remain “choiceful” as they navigate higher prices and tariffs.
CEO Brad Smith said in a statement, “When it rains, it rains on everyone.” This cautionary tone was echoed by the company’s quarterly earnings report, which saw total revenue exceeding analyst estimates.
However, despite beating expectations for revenue, Costco’s profit declined year-over-year, prompting concerns about the retailer’s ability to maintain profitability. The warning comes as Walmart recently reported its first year-over-year decline in quarterly profit in three years.
The mixed results have led investors to reassess their bets on the company, with shares now trading lower after hours.
Source: https://www.marketwatch.com/story/costco-shares-slip-after-profit-and-revenue-miss-33f5ca3f