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Costco posts mixed earnings results as consumers seek value amid tariff uncertainty

Costco (COST) reported mixed results on Thursday after market close as shoppers sought out value during the rollout of Trump's tariffs.

Adjusted earnings per share came in at $4.28, beating estimates of $4.24. Revenue of $63.21 billion missed expectations of $63.31 billion.

Same-store sales jumped 8%, versus the 6.99% expected. The US market was up 7.90%, while Canada and other international markets grew 7.80% and 8.50%, respectively.

On its earnings call, CEO Ron Vachris said Costco maintained its "competitive price position" by working with suppliers to lower prices on key items like eggs, butter, and olive oil, which helped lift sales of other fresh items and food.

Costco stock was flat in after-hours trading. Year to date, shares are up 10% versus the S&P 500 (^GSPC), which has remained flat.

Though the company does not provide annual guidance, Wall Street expects annual revenue of $275 billion and adjusted earnings per share of $18.15, per Bloomberg consensus estimates. Same-store sales are expected to grow 7.21% for the year.

Here's what Costco shared in its fiscal third quarter results, versus Bloomberg consensus estimates:

Revenue: $63.21 billion versus $63.31 billion

Adjusted earnings per share: $4.28 versus $4.24

Total company comparable sales growth: 8.00% versus 6.99%

  • US same-store sales growth: 7.90% versus 6.79%

  • Canada same-store sales growth: 7.80% versus 7.21%

  • Other international sales growth: 8.50% versus 6.66%

E-commerce growth: 15.70% versus 15.00%

Membership fee revenue: $1.24 billion versus $1.25 billion

Results were consistent with same-store sales growth in recent quarters. Costco's US sales also beat the 4.50% growth Walmart clocked last quarter.

Per Placer.ai, Costco has been outdoing rivals Target and Walmart when it comes to foot traffic trends.

The fresh foods category achieved high single-digit same-store sales growth, led by double-digit growth in meat. Discretionary goods saw high single-digit growth as well due to Costco's value proposition, CFO Gary Millerchip said on the call. That increase was led by gold and jewelry, home furnishings, housewares, small electronics, and apparel.

Read more: What to know before buying gold, silver, or platinum from Costco

The Trump administration's tariffs remain a key uncertainty for retailers. Recently, the US temporarily dropped tariffs on Chinese imports from 145% to 30% for 90 days, while so-called reciprocal tariffs were suspended for a 10% universal duty. On Wednesday night, a US trade court blocked President Trump's tariffs. The order was then followed by an appeals court ruling allowing tariffs to stay in effect.