Costco's Q2 results: +8.0% net sales, US comps +6.0% despite tariffs

Costco crushes Q4 fiscal 2025 earnings with 8% sales growth to $84.4B and EPS at $5.87—beating forecasts amid tariff risks and savvy consumer shifts. Membership fees up 14%, e-commerce soaring 13.6%. As a retail journalist, this resilience highlights Costco's unbeatable value moat in a tough economy. Dive into the full Costco earnings 2025 analysis! Read more: https://lnkd.in/d-FM2JFU #Costco #RetailNews #EarningsReport #ConsumerTrends #WarehouseClub #BusinessInsights #thesuccessdigest

Costco warehouse club wins over younger members Costco’s Earnings Beat Estimates on Steady Consumer Demand : profit that was better than expectations, a sign that spending remains healthy as shoppers prioritize essentials and seek value attracting consumers with its deals, ever-changing assortment and popular Kirkland brand, and tends to be more resilient to macroeconomic swings than other companies

Why Costco ($COST) Is one of the strongest retail moats around? Costco’s business model is a flywheel: A loyal membership base drives traffic → Higher sales volume → Stronger supplier leverage → Lower prices → Even more loyalty → This feedback loop is hard to replicate, and that’s the core of its moat. Its cost advantage, brand loyalty, and efficient scale set it apart in a brutally competitive retail space. And unlike other retailers, Costco doesn't chase profits through higher margins, over half of its operating income comes from membership fees. What fuels this moat? - Bulk pricing and frugal operations - Kirkland Signature: a private label that builds loyalty - Over 90% renewal rates, even with rising fees - Global warehouse expansion (35 new ones coming in 2026) - Strong sales per square foot and capital efficiency Even with modest digital investments (only 7% of sales come from e-commerce), Costco’s physical model is so sticky that it continues to thrive domestically and internationally. In terms of valuation, the stock looks pricey, since the long-term strategy and moat are hard to argue with.

Costco tops earnings, revenue estimates as warehouse club wins over younger members by Costco is drawing younger members with better merchandise and stronger digital offerings.

Costco tops earnings, revenue estimates as warehouse club wins over younger members by Costco is drawing younger members with better merchandise and stronger digital offerings.

Costco's latest earnings reveal a powerful truth: adaptability drives success in challenging environments. 📈 Despite rising inflation and supply chain pressures, Costco has outperformed expectations. – Membership income soaring 14% – E-commerce sales up by 13.5% 💻 – Stronger appeal to younger consumers – Successful launch of new product lines to tackle tariff impacts What’s their secret? A relentless focus on adding value. By introducing new Kirkland Signature products and shifting towards U.S.-made goods, they're keeping costs manageable while offering members more. The results? – Revenue spiked to $275 billion, a healthy growth of 8.1% 📊 – 27 new warehouses opened this quarter, with 35 more planned for next year – Membership renewal rates on the rise 🏷️ As Costco shows, in times of uncertainty, innovation and customer focus pave the path to growth. Food for thought: Can companies in other sectors learn from Costco’s playbook? With evolving consumer needs, how can they innovate while controlling costs? #Retail #Earnings #Innovation #BusinessStrategy #Costco Link to article: https://lnkd.in/ePzs-txu

Costco missed same-store sales estimates for the 2nd quarter in a row but its earnings still beat. Zacks’ Bryan Hayes, CFA highlights management’s strong performance: “The consistent trend speaks to management’s ability to execute in a relatively difficult retail environment. With inflationary pressures lingering throughout the quarter, Americans continued to flock to the membership-based retail chain.” Reporting by William Peters via MarketWatch. #Costco #Earnings #Zacks #Retail https://lnkd.in/efSQKNMP

📢 What’s It Worth? - Week #6: Costco (COST) 🛒 Costco trades at a steep premium, but is it justified? As part of my weekly “What’s It Worth?” series, I break down companies into simple one-page valuations. This week, I analyzed Costco Wholesale (COST), the membership-driven retailer with 880+ warehouses worldwide. Key findings: • Intrinsic Value (DCF): $961/share • Current Price: $943/share • Upside: +1.9% • Membership fees ($4.6B) make up most of Costco’s operating profit, with renewal rates >90%. • Exceptional efficiency: ROE ~30%, asset turnover 3.6x, cash conversion cycle just 2.9 days. • Risks: razor-thin margins (EBIT margin ~3.9%), macro sensitivity, and reliance on membership renewals. 📊 Peer comps show Costco trades at 55x P/E and 36x EV/EBITDA, roughly 2x industry averages. Investors clearly pay up for resilience and scale. 👉 Swipe through the one-pager for revenue mix, ratio analysis, peer comps, and valuation assumptions. ❓ Would you pay a 2× premium multiple for Costco’s consistency, or is the stock priced for perfection? #WhatsItWorth #Valuation #EquityResearch #Finance #Retail #Costco