Costco Posts Revenue Growth but Falls Short on Earnings

The wholesale retailer reported a 9% increase in revenue, driven by strong foot traffic and membership growth, but higher costs weighed on profits.

Costco's second-quarter revenue rose to $63.72 billion, exceeding analyst expectations, while net income increased to $1.79 billion but missed profit forecasts.
The company attributed its revenue growth to a 7.7% increase in store visits, outperforming competitors like Walmart and Target.
Membership revenue grew 7% year-over-year to $1.19 billion, with a renewal rate of 93% in the U.S. and Canada and 1 million new paid memberships added.
Higher merchandise and supply chain costs, partially due to purchasing additional inventory to mitigate tariff uncertainties, impacted overall earnings.
Costco plans to expand its footprint with 12 new U.S. locations, its 900th warehouse opening next week, and additional sites in Canada and international markets.