Costco Stock Drops Following Mixed Q2 Earnings and Tariff Concerns

The retailer reported revenue growth and rising membership fees but missed profit estimates as inflation and tariffs weigh on costs.

Costco's Q2 revenue rose 9% year-over-year to $63.72 billion, slightly exceeding analyst expectations of $63.13 billion.
Earnings per share fell short at $4.02, below the $4.11 forecast, with rising merchandise costs cited as a key factor.
Comparable store sales increased by 6.8%, driven by 8.3% growth in the U.S., while e-commerce sales surged 20.9%.
CEO Ron Vachris highlighted Costco's flexibility in navigating tariff challenges, including the ability to adjust its merchandise mix.
The company plans to open 12 new U.S. stores in 2025, alongside international expansions in Canada, Japan, and Australia.