Costco Reports Strong Q1 Earnings and Considers Stock Split

The retailer beat analyst expectations with rising membership revenue and sustained customer loyalty, while exploring a potential stock split to attract smaller investors.

Costco's Q1 earnings per share rose 13% year-over-year to $4.04, surpassing analyst expectations of $3.79, with revenue reaching $62.15 billion.
Membership fee income increased 8% year-over-year to $1.2 billion, reflecting the full impact of a September membership fee hike for the first time.
Comparable sales grew 5.2% globally, driven by strong customer traffic and increased average ticket size, despite challenges like gas deflation and currency fluctuations.
The company ended the quarter with 77.4 million paid household members and a high renewal rate of 92.8% in the U.S. and Canada, though slightly lower than the previous quarter.
Costco executives are considering a stock split, which could make shares more accessible to smaller investors and employees, though no decision has been made yet.