Costco Wholesale Corporation (COST) revealed its earnings for the second quarter, showing a revenue of $54.24 billion, which fell short of analysts’ expectations by approximately $490 million. The company’s earnings per share (EPS) stood at $3.30, missing the consensus estimate of $3.36. Despite this underperformance, Costco remains steadfast in its commitment to return value to shareholders, announcing a dividend increase to $1.02 per share, up from 90 cents. The news prompted a 2.5% decline in Costco’s share price to $480.60 during after-hours trading on Thursday. Chief Financial Officer, Richard Galanti, noted, ‘While we see robust membership growth, we’re facing challenges due to inflationary pressures, particularly in food prices.’ The total membership renewal rate now stands impressively at 92%, with over 65 million paid members reflected in their strong loyalty program. Profit margins have been impacted from the previous quarter, where Costco reported a net income of around $1.2 billion, down from $1.3 billion year-over-year. Analysts are keenly observing how Costco will navigate these economic challenges in the upcoming quarters while striving to maintain competitive pricing and customer satisfaction.
Costco Wholesale Corp. Reports Q2 Earnings, Faces Profit and Revenue Miss
