Shares of Costco (NASDAQ:COST) dipped slightly on Friday, despite the warehouse club reporting quarterly results that surpassed Wall Street expectations.
For the fiscal fourth quarter, the retailer posted earnings of $5.87 per share, beating analysts’ forecast of $5.81, supported by steady customer traffic and strong sales that offset rising costs.
Revenue came in at $86.16 billion, slightly above projections of $86.08 billion. Excluding gasoline, same-store sales increased 6.4%, marginally below the estimated 6.44%, according to LSEG data cited by Reuters. Costco operates 914 warehouses worldwide and raised its membership fees last year.
“[T]he […] numbers are decent, but they probably won’t change the narrative dramatically on the stock. Costco is among the most loved non-tech names in the entire market, with a very Berkshire-esq shareholder base,” noted analysts at Vital Knowledge in a research note.
Analysts highlighted that Costco’s combination of low pricing and loyal customers positions it well to navigate trade tariffs and softer sales trends, although recent U.S. comparable sales have slowed compared with last year’s highs.
Net income rose to $2.61 billion for the quarter ending Aug. 31, up from $2.35 billion a year earlier, while net sales climbed 8% to $84.4 billion.
“While renewal rates dipped modestly and could temporarily continue to do so, we remain confident in Costco’s long-term white space potential and are encouraged by the potential for growing tailwinds from Costco’s” new perks for executive members, analysts at BMO Capital Markets added.
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