Costco (COST, Financial) shares surged nearly 2% after opening lower, reaching $1,000.15. The company's first-quarter results for fiscal year 2025, ending November 24, 2024, exceeded market expectations, highlighting its resilience against tightened consumer spending.
Costco reported Q1 revenue of $62.15 billion, a 7.5% year-over-year increase, surpassing forecasts. Earnings per share were $4.04, also beating estimates. The results included a $100 million tax benefit related to stock compensation.
Membership numbers rose in the first quarter, with about 90% of existing members renewing. While transaction numbers remained steady, customer traffic increased, reinforcing Costco's unique position among U.S. retailers, supported by its affluent customer base willing to pay annual membership fees.
