From CNBC: 2025-05-29 19:40:00

Costco reported better-than-expected results in the third quarter of fiscal year 2025, with total revenue reaching $63.2 billion, beating Wall Street estimates. The company’s earnings per share (EPS) also surpassed expectations at $4.28. Costco’s strong performance was driven by steady sales growth and improved margins, despite concerns about tariffs impacting profitability. The retailer’s success is attributed to its value-focused business model and ability to navigate challenges effectively.

Costco’s quarterly earnings call highlighted the company’s eighth consecutive year-over-year increase in operating margin, showcasing its commitment to providing value to customers. By strategically managing margins and adapting to changes like tariffs, Costco has maintained its competitive edge in the retail industry. The retailer’s focus on offering high-quality products at affordable prices, particularly through its Kirkland Signature line, has contributed to its continued success and outperformance compared to competitors like Walmart.

In the third quarter, Costco saw a 5.7% increase in total comparable sales, with strong performance in categories like fresh food and non-food items. The company’s gross margins improved by 41 basis points, driven by core merchandise sales growth and cost efficiencies. Despite challenges like LIFO accounting impact and variability in membership renewal rates, Costco’s total paid membership continued to grow, reflecting the retailer’s ability to attract and retain customers.

Overall, Costco’s solid financial performance, consistent sales growth, and effective margin management have positioned the company as a leader in the retail sector. Despite a slight decline in renewal rates and missed membership expectations, Costco remains focused on delivering value to customers and driving traffic to its warehouses. With a strong outlook for the fiscal year and plans for expansion, Costco continues to demonstrate resilience and adaptability in a competitive market.



Read more at CNBC:: Here’s what impressed us most about Costco’s earnings beat in a tariff-filled world