Costco On Thursday, reported a Miss of the results, but beat expectations for revenues in the second quarter, comparable quarterly sales increased.
The shares fell more than 1% in prolonged exchanges Thursday evening.
Here's how the big company compared to what Wall Street was waiting for the closed quarter on February 16, based on a survey of LSEG analysts:
- Profit by action: $ 4.02 against $ 4.11 expected
- Income: $ 63.72 billion against 63.13 billion dollars expected
Costco CEO Ron Vachris said it is difficult to predict the impact of priceThe company aims to minimize cost increases for members. A third of its sales in the United States come from imports, he said, and less than half of them come from China, Mexico and Canada.
“In uncertain times, our members have historically attached even more important to the value of high -quality items at advantageous prices, and our teams will continue to take up this challenge by taking advantage of our global purchasing power, solid relations with suppliers and innovation,” said Vachris.
In particular quoting the pricing implications for the grocery store, Vachris said that the margins are “much tighter” in this area, but that Costco will work with suppliers to mitigate the repercussions for consumers.
President Donald Trump imposed 25% price On Mexico and Canada and doubled its price on China at 20% this week, although the White House said On Thursday, the United States will exempt goods that comply with the American-Mexico-Canada Agreement on Trade until April 2. Retailers as Target And Best purchase warned that prices would likely cause price increases.
Costco's second quarter turnover increased by 9% to 63.72 billion dollars, compared to $ 58.44 billion in the same quarter during the year 2024. Crusters in the quarter increased by $ 62.13 billion, against $ 57.33 billion in the period of the year illustrated.
The membership fees for the quarter totaled $ 1.19 billion, compared to $ 1.11 billion in the second quarter of 2024, the company declaring 78.4 million paid memberships and 140.6 million card holders in total. Around the world, the rate of renewal of Costco members reached 90.5%, an increase of 0.1% compared to the last quarter.
The retailer raised Its annual membership fees for the United States and Canada in September for the first time since 2017, although the financial director Gary Millerchip said that the impact of the increase in the total of this quarter was only 3%.
Costco declared net profit for the second quarter of $ 1.79 billion, or $ 4.02 per share, against net profit of $ 1.74 billion, or $ 3.92 per share, during the second quarter for the year 2024.
Comparable quarterly sales, which Costco defines as sales of warehouses and electronic commerce sites open for more than a year, increased from 6.8% from one year to the next, compared to the estimation of streetaccount by 6.4% and increased by 8.3% in comparable American sales for electronic commerce of 20.9% year by year.
On a monthly basis, comparable sales growth increased from 7.5% in January to 6.5% in February. Extreme time has provoked “a few strokes here and there,” said Vachris, but the company has recovered most of these lost cases.
Purchasing traffic increased by 5.7% from one year to the next, with an increase of 5.6% in the United States According to Millerchip, the best categories of sales of the company included gold and jewelry, furniture, equipment and toys, which have all increased two -year figures, according to Millerchip.
Consumer behavior, said Millerchip, has not changed much in the last quarters. Costco members are selective with the products they buy, he said, and would become even more if prices and inflation become greater.
“We believe that the member is probably as concentrated now on the quality, value and novelty as for some time, but they always show this desire to spend,” said Millerchip.
Costco’s fresh food category has experienced high -figure growth, said Millerchip. Continuing a tendency in the last quarter, sales of meat increased by two figures, said Millerchip, while consumers moved to proteins at a lower cost like chopped beef. Customers continued to spend more for food at home, he added.
The sections of meat and bakery have led the category of fresh food to direct the categories of Costco inflation, although overall inflation is low, he added.
