Costco (COST) reported fiscal second-quarter sales that topped analysts’ estimates, but earnings missed as costs rose.
The membership-based retailer saw revenue rise 9% year-over-year to $63.72 billion, above the analyst consensus from Visible Alpha. However, Costco’s net income of $1.79 billion, or $4.02 per share, missed expectations, despite rising from a year earlier. The results came as merchandise costs rose 9%.
The period marked the company’s second quarter since its membership fee hike went into effect in September. Revenue from membership fees rose 7% year-over-year to $1.19 billion, though executives previously said they expect the impact on margins to be weighted to the back half of the fiscal year and into fiscal 2026.
Shares of Costco slid 1.5% in after-hours trading Thursday following the release. They’ve added nearly a third of their value over the past year through Thursday’s close after hitting a record high last month.
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