Costco Reports Mixed Q2 Results as Stock Declines

The retailer exceeded revenue expectations but missed on earnings per share, citing inflation, tariffs, and cautious consumer spending.

Costco's Q2 revenue reached $63.72 billion, surpassing the $63.13 billion forecast, while adjusted earnings per share fell short at $4.02 versus the $4.11 estimate.
Comparable sales rose 6.8%, with U.S. performance stronger than Canada and international markets, while e-commerce sales surged by 20.9%.
Costco's stock dropped over 6% on Friday, reflecting concerns over rising costs and cautious consumer behavior, despite a 4.8% year-to-date gain.
Executives highlighted challenges from inflation and newly imposed tariffs, noting efforts to mitigate impacts through supplier relationships and inventory strategies.
The company added 1 million new memberships, increasing U.S. and Canada renewal rates to 93%, and plans to open 18 new locations, including its 900th warehouse.