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Costco Posts Q4 Beat as Shares Trail the S&P 500 This Year

Investor rotation to high-growth tech has weighed on the shares despite resilient membership economics.

Overview

  • The warehouse retailer reported fourth-quarter revenue of $86.1 billion, up 8%, with EPS rising 11% to $5.87, topping estimates.
  • Membership strength remains a cornerstone, with about 80 million members and roughly a 90% renewal rate.
  • Earnings benefited from this year’s membership fee increase, which was largely absorbed by consumers.
  • Management cited supply-chain gains and the Kirkland Signature private label as margin tailwinds across categories.
  • Shoppers are choosier on discretionary items and recent same-store sales came in slightly below expectations, while the stock is down 3.3% year to date and roughly 7% over 12 months, putting it on track for its weakest relative showing to the S&P 500 since 2002.