Retail giant Costco (COST) has delivered impressive results in its fiscal 2024 second quarter, surpassing earnings expectations with adjusted earnings per share of $3.92, compared to estimates of $3.62. The company reported revenue of $58.44 billion, a 5.7% increase year over year, although slightly below the projected $59.04 billion.
Same-store sales, excluding gas and foreign exchange, saw a significant 5.8% jump, with the US division exceeding expectations with 4.8% growth. Costco’s international locations also outperformed predictions. Membership fees hit $1.11 billion, up from $1.03 billion last year, while e-commerce sales surged over 18% from the previous year.
The company’s stock has soared more than 60% in the past year, outpacing the S&P 500. Costco currently operates 875 warehouses globally, with 603 stores in the US and Puerto Rico. Wall Street analysts have praised Costco’s results, with Telsey Advisory Group senior managing director Joe Feldman citing its appeal to affluent consumers and strong e-commerce growth.
Investors are monitoring Costco’s ability to adapt to changing consumer trends, while analysts foresee continued growth and strong financial performance in the near future. Costco’s resilience and consumer demand position the company for further success in the upcoming quarters.
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