Costco (COST) is set to report its fourth quarter earnings results after market close on Thursday as it navigates a choppy consumer landscape, tariff-related pressure, and competition from peers like Walmart’s (WMT) Sam’s Club.
For the quarter, revenue at the wholesale giant is expected to clock in at $86.03 billion, with adjusted earnings per share forecast to come in at $5.82, per Bloomberg consensus estimates.
Same-store sales are expected to grow 6.2%, with US same-store sales set to rise 6.1% and sales in Canada expected to rise 6.8%. Other international markets are expected to see the most strength, up 7.2%. Walmart’s Sam’s Club posted same-store sales growth of 5.9% in its latest results.
Wall Street expects annual revenue for Costco’s fiscal 2025 will tally $275.1 billion, with adjusted earnings per share coming in at $18.10, according to Bloomberg data. Same-store sales are expected to have grown 7.5%.
Year to date, Costco stock has been a laggard, with shares about 3% against the S&P 500’s (^GSPC) 13.5% gain.
Oppenheimer analyst Rupesh Parikh views Costco’s long-term prospects “very favorably” as the company leans into its value proposition, global growth, and consistent track record of returns for shareholders. Parikh added that its management team has the “potential for sustainable top and bottom-line delivery even against a more competitive retail backdrop.”
Still, the analyst notes that during the most recent quarter, Amazon rolled out its same-day delivery initiative, and since then, Costco’s stock — alongside BJ’s (BJ), Dollar General (DG), Dollar Tree (DLTR), and Kroger (KR) — has underperformed.
As retailers navigate tariffs, Evercore ISI analyst Greg Melich believes Costco’s position in the market helps.
“We believe Costco is well positioned to win share and leverage scale and supply chain strengths to navigate tariff impacts amidst a choppy consumer backdrop,” he wrote.
In Costco’s previous earnings call, CEO Ron Vachris said one-third of its US sales are imported from other countries, and two-thirds of those are non-food items. Chinese imports make up 8% of US sales.
Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at [email protected].
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