Costco reported a 9% year-over-year increase in total revenue to $63.72 billion for its second quarter of fiscal year 2025, beating Wall Street expectations. However, the company’s earnings per share (EPS) missed consensus forecasts by 0.09. This was largely due to a 13-cent hit from foreign exchange rates.
Despite this miss, Costco’s EPS still increased 2.6% on an annual basis. The company saw significant growth in total comparable sales, driven by a 5.7% increase in traffic and a 1% increase in ticket prices. Comparable e-commerce sales also grew 20.9%, outpacing the 13% clip observed in the first quarter.
Costco’s worldwide renewal rate remained strong at 90.5%, with 93% in the U.S. and Canada, up from 90.4% and 92.8% in the prior quarter. The company opened just one new warehouse in the second quarter but has several planned openings in the coming weeks.
The company’s store count is expected to reach 915 by the end of the year, with an estimated increase of 25 stores compared to the end of fiscal 2024. This growth trajectory is seen as a positive sign for continued market share gains versus retail peers.
Despite its strong earnings performance, Costco’s stock price has been relatively stable, trading at nearly 55 times forward earnings estimates. The company’s focus on reinvesting revenue from its advertising business to keep prices low is also seen as a key driver of its growth strategy.
Source: https://www.cnbc.com/2025/03/06/costco-checks-plenty-of-key-boxes-for-investors-despite-earnings-miss.html