Costco Wholesale Corp (NASDAQ: COST) reported higher quarterly revenue and better-than-expected profit on Thursday (Friday AEDT), as cost-conscious consumers sought low-priced groceries and discretionary items.
The company posted fiscal first-quarter 2025 earnings of nearly US$1.8 billion (A$2.8 billion), compared to $1.59 billion last year, and net sales for the first quarter increased to $60.99 billion from $56.72 billion for the same time last year.
Total revenue climbed 7.5% to $62.15 billion (A$97.6 billion) for the quarter, just below analysts’ forecasts of $62.33 billion and up from $57.799 billion last year.
But Costco’s profit beat, with earnings per share at $4.04, surpassing market expectations of $3.79 per share and higher than $3.58 per share last year.
Comparable sales for the quarter jumped 5.2%, and e-commerce was a standout segment, growing 13% year-over-year.
The retail giant said its results were driven by robust revenue growth, strong e-commerce performance, and rising membership fees, as Costco’s membership-based model and competitive pricing continue to attract budget-focused consumers.
The company reported strong growth in membership fees and international markets, which remain key drivers of its expansion.
Costco operates globally with 897 warehouses, including in the U.S., Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand and Sweden.
Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.
Costco shares initially rose in afterhours trading following the results announcement, but are down around 0.13% (10:08am AEDT) in extend trading after closing 0.63% lower at $988.39 on Thursday.