Costco Q2 2025 Earnings

Costco Reports Earnings Miss, Beats Revenue Expectations in Q2

Earnings and Revenue Performance

Costco Wholesale reported an earnings miss in its second quarter, but exceeded expectations for revenue. According to a survey of analysts by LSEG, the company’s earnings per share came in at $4.02, lower than the expected $4.11. However, revenue for the quarter ended February 16th came in at $63.72 billion, beating the expected $63.13 billion.

CEO’s Comments

Costco CEO Ron Vachris acknowledged that forecasting the impact of tariffs is challenging, but emphasized the company’s commitment to minimizing cost increases for members. He noted that a third of the company’s U.S. sales come from imports, with less than half of those coming from China, Mexico, and Canada.

Quarterly Results

Second-quarter revenue increased 9% to $63.72 billion, up from $58.44 billion in the same quarter last year. Net sales for the quarter rose 9.1% to $62.53 billion, compared to $57.33 billion in the year-ago period.

Membership Fees and Renewal Rate

Membership fees for the quarter totaled $1.19 billion, up from $1.11 billion in the second quarter of 2024. The company reported 78.4 million paid memberships and 140.6 million total cardholders, with a worldwide membership renewal rate of 90.5%, an increase of 0.1% from last quarter.

Comparable Sales and e-Commerce

Quarterly comparable sales, which include sales from warehouses and e-commerce sites open for more than a year, rose 6.8% year over year, exceeding the StreetAccount estimate of 6.4%. Comparable sales for e-commerce rose 20.9% year over year.

Fresh Foods and Meat Sales

The fresh foods category experienced growth in the high single digits, with sales of meat increasing by double digits, driven by consumers shifting towards lower-cost proteins like ground beef.

Conclusion

Costco’s strong second-quarter performance reflects the company’s ability to adapt to changing market conditions and maintain its position as a leading wholesale retailer. Despite the challenges posed by tariffs, the company’s commitment to minimizing cost increases for members and its focus on providing high-quality products at great prices have helped drive its success.

Frequently Asked Questions

Q: What was Costco’s earnings per share for the second quarter?
A: $4.02, lower than the expected $4.11.

Q: What was Costco’s revenue for the second quarter?
A: $63.72 billion, beating the expected $63.13 billion.

Q: What was the company’s membership renewal rate for the quarter?
A: 90.5%, an increase of 0.1% from last quarter.