From Financial Modeling Prep: 2025-03-07 11:40:00

Costco (NASDAQ:COST) reported mixed Q2 results with revenue beating estimates but earnings falling short. Strong consumer demand driven by inflation fears and bulk buying boosted sales. However, margin pressures led to a 6% drop in shares post-earnings. Quarterly EPS was $4.02, missing estimates, while revenue reached $63.72 billion, exceeding expectations.

Comparable sales rose 6.8% YoY, with membership fees up 7.4% to $1.19 billion. Despite slightly missing estimates, this reflects strong customer retention. Rising input costs, especially for eggs, cocoa, and coffee, impacted gross margins. Costco faces challenges balancing high demand with cost pressures.

Investors responded cautiously to Costco’s earnings miss and margin concerns. The retail giant remains a key player, but inflationary pressures continue to affect profitability. Despite revenue surpassing expectations, the focus on rising input costs and margin pressures led to a decline in share value post-earnings report.



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