- Costco delivered strong quarterly revenue driven by increased store visits but missed profit expectations.
- CEO Ron Vachris said the company would work to minimize any cost increases from tariffs.
- The company added 1 million new paid memberships and increased renewals to 93% in the US and Canada.
Costco delivered strong quarterly revenue as shoppers turned to the wholesale club to deliver value in the face of high prices elsewhere.
However, the results missed analyst expectations for earnings per share and Costco stock fell by about 1.5% in after-hours trading.
The company reported net sales of more than $62.5 billion for the quarter, up 9.1% from $57.3 billion for the same period last year, driven mostly by increased visits.
During the earnings call Thursday, CEO Ron Vachris said that while it was difficult to predict the impact of tariffs, the company would work to minimize any cost increases for customers. He added that less than one-sixth of Costco products sold in the US are imported from China, Mexico, and Canada.
CFO Gary Millerchip said uncertainty around tariffs led the company to buy additional inventory, leading to increased supply chain costs in the quarter.
Foot traffic data found 2025 was off to a strong start for Costco, with visits up 7.7% — more than double the increase for Walmart and Target.
The company added 1 million new paid memberships, nudging its renewal rate up to 93% in the US and Canada.
Web and app sales and usage also ticked up during its fiscal second quarter, and the company said it logged 43 million visits to its new warehouse inventory tool.
In its call with analysts, Costco leadership didn’t field any questions about its DEI stance following its emphatic defense of its diversity and inclusion policies and the resulting scrutiny from a group of Republican attorneys general.
Looking ahead, the company plans to open 12 more US locations, including its 900th warehouse next week, plus two in Canada, and four in other international markets.
