Costco exceeded fiscal first-quarter expectations on Thursday amid continued momentum as shoppers seek value across grocery, household and discretionary categories.
Costco reported earnings per share of $4.50, ahead of the $4.27 expected. Revenue reached $67.31 billion, slightly above forecasts of $67.14 billion and up from $62.15 billion in the prior corresponding period (pcp).
The company does not issue a full-year outlook and is expected to provide additional commentary during its earnings call at 5 pm ET (9 am AEDT).
Sales rose 8.2% year on year to $65.98 billion from $60.99 billion.
The warehouse club has attracted new members and lifted sales both in-store and online as U.S. consumers across income brackets continue to prioritise value.
Younger customers have also driven growth, with heightened sign-ups boosting membership revenue.
Costco further benefitted from a membership fee increase in the U.S. and Canada, which took effect in September 2024 and has flowed through as new and renewing members paid higher rates.
Net income for the three months to 23 November rose to $2 billion, or $4.50 per share, up from $1.80 billion, or $4.04 per share, a year earlier.
Comparable sales rose 5.9% in the U.S. and 6.4% globally, while digital sales surged 20.5% year over year.
Membership fees remain a critical earnings driver, enabling Costco to maintain competitive pricing. However, the retailer continues to face higher costs linked to U.S. tariffs.
In late November, Costco filed a lawsuit against the Trump administration seeking a refund of tariffs paid this year and an injunction preventing further collections as it awaits a Supreme Court ruling.
Costco operates 923 warehouses worldwide, including 633 in the United States and Puerto Rico, 114 in Canada, 42 in Mexico, 37 in Japan, 29 in the United Kingdom, 20 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, three in France, two in Sweden and one each in Iceland and New Zealand.
Its e-commerce platforms span the U.S., Canada, the UK, Mexico, Korea, Taiwan, Japan and Australia.
Despite its long-term outperformance, the stock has declined nearly 4% year to date, lagging the S&P 500’s 17% rise.
Over the past five years, however, Costco shares have climbed 141%.
At the time of writing, Costco (NASDAQ: COST) stock closed up 1.2% to $884.48 on Thursday, before easing 0.5% to $880.0 in after-hours trade. The company has a market capitalisation of $392.67 billion.
