Costco is set to report fiscal third-quarter results around 4:15 PM ET, with investors seeking strong earnings after a recent weekly decline. The prior quarter showed net sales of $68.24 billion, up 9.1% year over year, comparable sales growth of 7.4%, and EPS of $4.58. Membership fee income rose 13.6% to $1.355 billion, supported by 82.1 million paid households and a 89.7% worldwide renewal rate. The stock trades at 47 times forward earnings. Key watch items include tariff uncertainty and potential sourcing or country-of-production changes affecting gross margin, membership growth and renewal rates, and digital performance, including digitally enabled comparable sales growth and personalized recommendations driving e-commerce revenue.
"Investors are watching Costco ( NASDAQ: COST | COST Price Prediction) ahead of its fiscal third-quarter results expected tonight, May 28, around 4:15 PM ET. After a 6.55% slide over the past week, investors will be looking for strong earnings tonight to defend the stock's premium valuation."
"COO Ron Vachris said, "The future impact of tariffs remains extremely fluid as the recently eliminated IEEPA tariffs have now been replaced with new global tariffs for at least the next 150 days." Investors will watch whether Kirkland Signature sourcing shifts and country-of-production moves preserve the 11.02% gross margin Costco posted last quarter."
"Executive members reached 40.4 million, up 9.5%, and the September 2024 fee hike is still flowing through to results. The U.S./Canada renewal rate of 92.1% ticked down by 10 basis points last quarter due to lower digital-member retention. Any further drift would dent the highest-quality line in the P&L."
"Digitally enabled comp sales jumped 22.6%, and Millerchip noted "personalized product recommendation carousels drove over $470 million of e-co""
Read at 24/7 Wall St.
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