Costco Wholesale delivered solid earnings with increased revenue and strong e-commerce performance, though pressures from operating expenses remain.Costco Wholesale (COST -2.02%), the leading membership warehouse retailer, announced its second quarter fiscal 2025 results on March 6, 2025. Highlighting robust sales growth, it reported $62.53 billion in net sales, a 9.1% increase compared to the same quarter last year. Membership fees added an additional $1.193 billion, up 7.3%. Net income showed modest growt ...

Costco on Thursday reported an earnings miss, but beat expectations for revenue for the second quarter.Here's how the wholesale company did compared with what Wall Street was expecting for the quarter ended Feb. 16, based on a survey of analysts by LSEG:Earnings per share: $4.02 vs. $4.11 expectedRevenue: $63.72 billion vs. $63.13 billion expectedSecond-quarter revenue increased 9% to $63.72 billion, from $58.44 billion during the same quarter in fiscal 2024. Net sales for the quarter rose 9.1% to $62.53 bi ...

Financial Performance - Net sales for the second quarter increased by 9.1% to $62.53 billion, compared to $57.33 billion last year[2] - Net income for the quarter was $1,788 million, or $4.02 per diluted share, up from $1,743 million, or $3.92 per diluted share, last year[3] - Comparable sales for the second quarter showed a total company increase of 6.8%, with U.S. sales up 8.3% and e-commerce sales up 20.9%[2] - For the four-week reporting month of February, net sales were $19.81 billion, an increase of 8.8% from $18.21 billion last year[4] - Total revenue for the first 24 weeks was $125.87 billion, a rise of 8.3% from $116.24 billion last year[10] - Operating income for the quarter was $2.316 billion, compared to $2.062 billion last year[10] Membership and Fees - Membership fees for the quarter increased to $1.193 billion, up from $1.111 billion last year[10] Cash and Assets - Cash and cash equivalents at the end of the period were $12.356 billion, compared to $9.906 billion at the beginning of the year[14] - The company reported a net cash provided by operating activities of $6.008 billion for the first 24 weeks[14] Operations - Costco operates 897 warehouses globally, with 617 located in the United States and Puerto Rico[5]

ISSAQUAH, Wash., March 06, 2025 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the second quarter (twelve weeks) and the first 24 weeks of fiscal 2025, ended February 16, 2025. Net sales for the quarter increased 9.1 percent, to $62.53 billion, from $57.33 billion last year. Net sales for the first 24 weeks increased 8.3 percent, to $123.52 billion, from $114.05 billion last year. Comparable sales for the second quarter a ...

Investors are on edge about what tariff policy means for marketsComing off a strong Q4 earnings season, fresh February corporate sales figures can help assess the macro situationWe focus on the consumer, the chips industry, and what a host of asset managers may reveal as interim data reports roll inVolatility is back in town. Tariff jitters and concerns about growth and inflation have resulted in an S&P 500 dip and the Cboe Volatility Index (VIX) jumping above 20.Investors grapple with a very sanguine bac ...

Business Model - Costco operates as a club store, requiring customers to pay a membership fee to shop, which significantly alters the retail dynamic [1] - Membership fees generated nearly $1.2 billion in revenue, contributing over half of Costco's operating income of approximately $2.2 billion in the fiscal first quarter of 2025 [2][3] Financial Performance - In the fiscal first quarter, Costco's top line grew by 7.5%, with same-store sales increasing by 5.2% [5] - Earnings per share rose to $4.04, up from $3.58 in the same quarter of the previous year, indicating strong performance [5] - Store traffic increased by 5.1%, suggesting that membership fee-paying customers are returning to make more purchases [5] Membership Retention - Costco maintains a high member retention rate of over 90%, indicating effective customer satisfaction strategies [3] - The company leverages its membership fees to offer competitive pricing, enhancing customer loyalty [3] Valuation Concerns - Costco's stock is currently within 5% of its all-time highs, leading to a lower dividend yield and suggesting an expensive valuation [7] - Traditional valuation metrics, such as price-to-sales and price-to-earnings ratios, are above their five-year averages, indicating a steep price [8] - Historical analysis shows that Costco's valuation ratios are near the highest levels in the company's history, suggesting the stock is historically expensive [9] Investment Outlook - Despite Costco's strong business fundamentals, the current stock price may not present a good investment opportunity [9] - The stock has experienced significant drawdowns in the past, indicating potential future price declines that could create a buying opportunity [10]

Group 1 - The article emphasizes the long-term growth and dividend growth investing strategy, focusing on identifying undervalued stocks and high-quality companies that provide cash for reinvestment [2] - Profitability is highlighted as a safer driver of gains compared to low valuation, with a strong emphasis on margins, free cash flow stability and growth, and returns on invested capital [2] - The author expresses a commitment to thorough research on high-quality companies, indicating a deep interest in understanding their business models and financial health [2] Group 2 - The article includes a disclosure stating that the author has a beneficial long position in Costco shares, indicating a personal investment interest in the company [3] - It is noted that the article reflects the author's own opinions and is not influenced by compensation from any company mentioned [3] - Seeking Alpha's disclosure clarifies that past performance does not guarantee future results and that the views expressed may not represent the platform as a whole [4]

Costco Wholesale (COST -0.17%) has been a dominant player in the retail space for decades. For its shareholders, the results have been even more impressive. Over the past five years, Costco's stock performance has outpaced the S&P 500 by nearly 150 percentage points. Looking back 10 years, the stock has more than tripled the market's return.As is the case with most stocks that post market-beating returns, Costco stock trades for a premium. At this writing, shares trade for 62 times trailing earnings, only s ...

As Costco Wholesale Corporation (COST) prepares to unveil its second-quarter fiscal 2025 earnings results on March 6 after the market closes, investors face an important decision: Should they buy the stock now or hold their current positions? With earnings expectations and market conditions in mind, it is crucial to evaluate key factors influencing Costco’s performance and whether the stock offers an attractive entry point ahead of its earnings report.Costco's strategic investments, customer-centric approac ...

Core Viewpoint - Costco Wholesale is set to report its fiscal second-quarter results, with expectations for continued growth despite a challenging market environment [1][2]. Financial Performance Expectations - Analysts predict an 8% revenue increase, reaching $63 billion for the 12-week period ending mid-February, with a modest profit forecast of $4.10 per share, reflecting less than a 5% year-over-year increase [4]. - Costco's total sales rose by 9.2% in December and 9.9% in January, with domestic comparable sales remaining above 9% [5]. - Analyst estimates for quarterly profit have gradually increased from $4.01 to $4.10 over the past three months, indicating positive sentiment [5]. Membership Fee Adjustments - Costco recently increased its membership fees, with the Gold Star plan rising from $60 to $65 and the Executive tier from $120 to $130, marking the smallest percentage increase since 1983 [6]. - Membership fees contribute approximately 2% of total sales but are crucial for profitability, translating into a significant portion of the bottom line [7]. Historical Context and Leadership - Costco has maintained positive top-line growth for over three decades, with only one year of decline during the Great Recession [9][10]. - CEO Ron Vachris, a long-time employee, has ensured continuity in leadership and operational strategy [10]. Market Position and Valuation - Costco's stock is currently valued at 57 times this fiscal year's net income projection, indicating a premium valuation compared to fundamentals [9]. - Historical performance suggests that betting against Costco has not been successful, reinforcing confidence in its market position [11].