MW Costco shares slip after profit and revenue miss

By Bill Peters

The retailer reports after Walmart recently warned of its first year-over-year decline in quarterly profit in three years

Shares of Costco Wholesale Corp. slipped after hours on Thursday, after the membership warehouse retailer reported a per-share profit and revenue figures that both missed Wall Street's expectations.

For Costco's fiscal second quarter, revenue rose 9.1% year over year to $62.53 billion, below FactSet analyst estimates for $63.11 billion. Same-store sales were up 6.8%, above forecasts for 6.4%. E-commerce sales jumped 20.9%.

On a GAAP basis, Costco earned $4.02 a share, compared with FactSet forecasts for $4.11.

Costco said that for the four weeks ending March 2 - the period it defined as the retail month of February - sales were $19.81 billion, up 8.8% year over year.

Shares $(COST)$ fell 1.4% after hours.

The company reported after Walmart Inc. $(WMT)$ - among the safest bets in the retail world thanks to its size and ability to keep prices lower - recently warned of its first year-over-year decline in quarterly profit in three years. Target Corp. $(TGT)$, meanwhile, warned of possible price increases in response to President Donald Trump's tariffs, which amount to a tax on imports.

Still, those tariffs have remained in flux. Trump on Thursday said that new 25% tariffs on imports from Mexico, which took hold earlier in the week, would be paused for most items until early April.

Moreover, retail sales fell in January, with demand hampered by cold weather and a holiday-season spending hangover. Consumer confidence has also shown signs of slipping.

As shoppers face higher costs of living, the biggest retailers - such as Costco and Walmart - have made deeper inroads with wealthier consumers looking for a break from inflation. Costco put up sales gains in December and January, and has said its pharmacy business was putting up strong growth as drugstore chains struggle.

Shares of Costco were up around 30% over the past 12 months.

-Bill Peters

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March 06, 2025 16:36 ET (21:36 GMT)

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