Costco Q2 Earnings Lag Estimates, E-Commerce Comp Sales Rise 21%

Core Insights - Costco Wholesale Corporation reported second-quarter fiscal 2025 results with total revenues exceeding estimates while adjusted earnings fell short, both metrics showing year-over-year growth [1][2][3] Financial Performance - Adjusted earnings per share were $4.02, missing the Zacks Consensus Estimate of$4.09, but up 8.4% from $3.71 in the prior year [2] - Total revenues reached$63,723 million, a 9% increase from the previous year, surpassing the Zacks Consensus Estimate of $63,224 million [3] - Comparable sales rose 6.8$1,193 million, with paid household members rising 6.8% to 78.4 million [5] - Total cardholders grew 6.6% to 140.6 million, indicating strong customer loyalty with a membership renewal rate of 90.5% [4][5] Operational Metrics - Global shopping frequency improved by 5.7%, while average transaction size grew by 1% [6] - E-commerce sales saw a significant increase of 20.9% year over year, or 22.2% when excluding gasoline prices and currency fluctuations [7] Margin and Income - Gross margin expanded by 5 basis points to 10.9%, with operating income growing 12.3% to $2,316 million [7] - Operating margin improved by 10 basis points to 3.6$12,356 million and long-term debt of $5,755 million [10] - Capital expenditures for the quarter were approximately$1.14 billion, with a forecast of about $5 billion for fiscal 2025 [10]