Costco Earnings: Profit Beats Expectations Despite Missing on Revenue, Membership Growth Remains Strong
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Costco missed on revenue but beat on earnings, with adjusted EPS of $3.92 vs expected $3.62. Same-store sales grew 5.8% excluding gas and forex.
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Digital sales grew 18% year-over-year. Costco rolling out new digital payment options and improvements to its app.
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Membership renewal rate remained high at 92.9% in US & Canada. CFO said metrics point to potential membership fee hike down the line.
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Opened 6th store in China last quarter and 1st sushi store in Washington state. Testing new chocolate chip cookie in food courts.
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Analysts say valuation seems stretched after stock's recent run. Typical to see a pause after Costco reports, not overly concerned.