The side of a costco side is seen in Hawthorne, California, on April 4, 2025.
Jay l Clendenin | Getty images
Actions of Costco It fell slightly on Thursday, despite the Warehouse Club by publishing gains and quarterly income that exceeded estimates and reported 8% sales earnings year after year.
Unlike many retailers, Costco does not provide an annual perspective. However, the company's leaders spoke in a gain call on the challenges and the highest cost rates have meant for their business
This is how Warehouse Club retailers did in his third fiscal quarter compared to what Wall Street expected, based on a LSEG analysts survey:
- Profit per action: $ 4.28 compared to $ 4.24 expected
- Revenue: $ 63.21 billion compared to $ 63.19 billion expected
The net income of Costco for the three -month period that ended on May 11 increased to $ 1.90 billion, or $ 4.28 per share, compared to $ 1.68 billion, or $ 3.78 the previous year. The income increased from $ 58.52 billion in the period of the previous year.
Comparable sales, a metric of the industry that eliminates the unique factors, such as store openings and closures, increased by 8%, and electronic commerce sales increased almost 16% compared to the previous period, excluding gas and the impact of changes in currencies.
As tariffs increase economically and potentially consumer prices, Costco could benefit. Unpredictable tariff policy could help bring more customers to Warehouse Club, which is known for its competitive prices and massive discounts, and encourage them to renew the membership. Their clubs also sell gas and edible discount, which are more stable traffic conductors, even when consumers withdraw the expense. And compared to other retailers, Costco has a stronger hand in price negotiations with suppliers due to its large size.
Around a third of Costco US sales are goods that are brought from other countries, said financial director Gary Millerchip about the company's profit call. He said that China imported articles represent approximately 8% of total US sales.
Some retailers have already warned that higher rates will mean higher prices. Best Buy CEO Corie Barry said Thursday that the retailer had already raised prices in some electronic consumer products due to rates. Cosmetics Company Elfa beauty announced an increase in prices in its composition last week. AND Walmart CFO John David Rainey warned earlier this month that the highest prices would reach stores and the discount website at the end of May or June.
In the company's profit call, CEO Ron Vichris said Costco has sought ways to reduce the costs of the rate while maintaining low prices. He said his buyers hastened the orders to take them to the United States before the rates. He has redirected goods from countries with higher rates to non -American markets. And he has obtained more articles for his private brand, Kirkland Signature, in countries or regions where articles are sold.
Even with tariffs, he said, Costco has dropped the price of some items, including eggs, butter and olive oil. He said that he is also trying to lean in the reasons why customers could register or renew the membership, such as extending the hours of their service stations that sell discount fuel.
Compared to other retailers, Costco sells a thinner variety of items such as having less brands of peanut butter or diapers. Millerchip said the limited approach means that Costco is a larger buyer and can work more closely with price suppliers. He said Costco can also turn to other items, if necessary.
In some cases, Costco has absorbed the differences in cost -related costs and, in other cases, prices have increased, Millerchip said. For example, the retailer decided to keep the line on the price of pineapples and bananas of Central and South America because they are basic items for buyers, he said.
“We feel it was really important to eliminate the impact there for the member working with our suppliers and finding efficiencies and accepting that there may be an impact on the margin,” he said.
On the other hand, he said, he decided to increase the price of the flowers of Central and South America, since those are a more discretionary element.
As of Thursday, Costco shares have increased approximately 10% so far this year. That has exceeded profits of less than 1% of S&P 500 during the same period.
