Costco fell short of Wall Street’s revenue expectations for its third quarter but reported better-than-expected earnings per share, aided by strong demand for private-label goods and early inventory planning to mitigate the impact of US tariffs.
Revenue rose 8% to $61.96 billion for the quarter ended May 11, missing the $63.19 billion forecast. However, earnings per share came in at $4.28, narrowly topping the $4.24 estimate.
The membership-based retailer said it pulled forward shipments of some products originally slated for summer, helping sidestep higher costs from tariffs imposed under President Trump’s trade policy.
Costco also rerouted some goods to non-US markets to avoid duties altogether.
Unlike Walmart, which has warned it will raise prices this month, Costco said it views price hikes as a “last resort.”
Target, meanwhile, chose not to raise prices but downgraded its annual outlook.
Costco’s private-label Kirkland Signature line continues to attract value-conscious shoppers, with same-store sales (excluding fuel) rising 8%, beating expectations of 6.96%.
Analysts say warehouse clubs are benefiting as inflation pushes more consumers to buy in bulk.
Shares were little changed in extended trading. The stock is up about 10% year-to-date.
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