Costco reported impressive quarterly revenues of over $62.5 billion, a 9.1% increase from the previous year, largely driven by a 7.7% rise in store visits. Despite this success, the company fell short of profit expectations which caused stock prices to drop. CEO Ron Vachris indicated that the company is taking steps to manage potential cost increases due to tariffs, while the CFO mentioned higher supply chain costs from an increase in inventory purchases. Memberships rose significantly, highlighting customer loyalty amidst economic pressures.
CEO Ron Vachris emphasized Costco's commitment to minimizing cost increases despite tariff uncertainties, stating less than one-sixth of products sold are imported from affected countries.
CFO Gary Millerchip noted that the company’s decision to buy additional inventory due to tariff uncertainty resulted in higher supply chain costs this quarter.
Despite missing earnings expectations, Costco reported a 9.1% revenue growth with net sales exceeding $62.5 billion due to increased store visits.
Costco’s membership renewal rate rose to 93%, driven by the addition of 1 million new paid memberships amidst rising foot traffic.
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