Costco Wholesale Corp (NASDAQ:COST) has reported a significant increase in net income and sales growth for its second quarter of fiscal year 2025. The company’s net income rose to $1.788 billion, or $4.02 per diluted share, up from $1.743 billion, or $3.92 per diluted share, in the same quarter last year.
The company’s net sales increased by 9.1% to $62.53 billion, driven by strong growth in US comparable sales of 8.3%, Canada comparable sales of 4.6%, and international comparable sales of 1.7%. E-commerce sales also saw a significant increase of 20.9%.
Membership fee income grew by 7.4% year-over-year, with a U.S. and Canada renewal rate of 93% and a worldwide rate of 90.5%. Costco plans to open 28 new warehouses during fiscal year 2025, including significant expansions in the US and internationally.
However, foreign exchange rate movements negatively impacted international net income translation to US dollars by $57 million, and tariffs and foreign exchange fluctuations pose headwinds for the company. The company faces challenges in maintaining core margins due to higher supply chain costs and mix changes in non-food categories.
Despite these challenges, Costco remains focused on balancing investments and results. The company continues to invest in employee wages and benefits, with a new agreement that includes multiple wage increases over the next few years.
Overall, Costco’s strong Q2 earnings demonstrate its ability to navigate various market trends and continue growing its membership base. With a focus on investing in member value and adapting to changing market conditions, the company is well-positioned for long-term success.
Source: https://finance.yahoo.com/news/costco-wholesale-corp-cost-q2-071757862.html