Costco's Second Quarter Surprises: Revenue Hits New Heights

Author: Hannah Lewis Updated: 03-06-2025 04:58 PM

Costco Achieves Impressive Revenue Growth in Q2

Costco Wholesale Corp (COST) recently shared its financial results for the second quarter, creating excitement among investors and analysts alike. This report highlights significant achievements and the numbers that tell Costco's story in a competitive retail landscape.

Revenue Insights for Q2

During the second quarter, Costco reported an impressive revenue of $62.72 billion, which is slightly lower than the consensus estimate of $63.13 billion but still marks a robust performance. Despite a slight miss in earnings per share (EPS), with reported figures of $4.02 compared to the analyst estimate of $4.10, the overall revenue growth speaks volumes about the retailer's operational strength.

Year-Over-Year Growth

The year-over-year growth for net sales stood at a notable 9.1%. More specifically, comparable sales advanced by 8.3% in the U.S., 4.6% in Canada, and 1.7% in other international markets. This brings the total comparable sales growth to 6.8%, alongside an impressive 20.9% increase in e-commerce sales.

Membership Fees on the Rise

Membership remains a critical component of Costco's business model. The company reported membership fees of $1.19 billion, a jump from $1.11 billion in the same quarter last year. Notably, Costco announced it will raise the price of its annual store membership by five dollars, a decision that marks its first increase since 2017.

Operational Highlights

As of now, Costco operates a total of 897 warehouses, with 617 located in the U.S. The company finished the quarter with a healthy cash balance of $12.36 billion, a substantial rise from $9.91 billion at the end of the previous quarter. This strong financial positioning gives Costco a firm foundation to continue its growth trajectory.

Market Reactions to Earnings Announcement

Following the earnings report announcement, Costco shares experienced a slight decline of 1.08% in after-hours trading, referenced at around $1,015.50. This reaction demonstrates the market's sensitivity to earnings announcements, reflecting broader investor sentiments that combine both excitement and caution.

Upcoming Investor Call

Costco executives are set to discuss these results further during an anticipated call with investors and analysts. This interaction promises to provide more insights into the company's strategic direction and operational updates, allowing stakeholders to grasp the future outlook more clearly.

Frequently Asked Questions

What were Costco's reported revenues for Q2?

Costco reported revenues of $62.72 billion for the second quarter.

Did Costco meet analyst expectations for earnings per share?

No, Costco's EPS was reported at $4.02, missing the expected $4.10.

How did comparable sales perform in the U.S.?

Comparable sales in the U.S. rose by 8.3% in the second quarter.

What significant change did Costco announce regarding membership fees?

Costco announced a five-dollar increase in its annual membership fee, the first hike since 2017.

What is Costco's current cash position?

Costco ended the quarter with $12.36 billion in cash and cash equivalents.

About The Author

Hi there, I'm Hannah Lewis, a writer and financial specialist of 36 years old committed to making money understandable and approachable to everyone. Years of working in the field have given me a thorough grasp of market trends, investment techniques, and economic fundamentals. My objective is to enable people, by means of understandable, useful guidance, to take charge of their financial destiny.

I have written many articles for financial blogs over my career that simplify difficult financial ideas into understandable insights. Being financially literate is a critical ability, and I am passionate about enabling people to confidently manage their financial lives. Regardless of your level of experience, my work will help you at every stage of the investment process. I appreciate being allowed to share in your success and financial expansion.

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