Costco Wholesale (NASDAQ:COST) delivered a mixed Q2 FY2025, with a slight revenue beat but a minor EPS miss. While no formal guidance was provided, the company shared February sales numbers and trends, which were largely in line with expectations. Inflation has begun to creep back in, with low single-digit increases in the quarter, particularly in Fresh. Management acknowledged the potential impact of shifting tariff policies, adding an element of uncertainty to cost pressures moving forward.
Membership growth and renewals remain strong despite the recent fee hike, reinforcing Costco’s ability to retain its loyal customer base. It was also encouraging to hear that the company is ramping up its data collection and mining efforts to better personalize the customer experience—a strategy that could drive higher average ticket sizes over time.
While this wasn’t the most impressive earnings report, particularly following a strong run in the stock, Costco continues to post solid growth. Its operational consistency and ability to navigate cost pressures should provide investors with a level of confidence in its long-term trajectory.
For more details, key highlights, and commentary, check out the high-level earnings summary.
