Costco (COST) once again bulked up its earnings as it reported fiscal 2024 Q2 results.
The wholesale club posted adjusted earnings per share (EPS) of $3.92, soundly beating estimates of $3.62. Revenue came in at $58.44 billion, up 5.7% year over year, but slightly lower than expectations of $59.04 billion, per Bloomberg data.
Same-store sales, excluding gas and foreign exchange, jumped 5.8%.
In the US, same-store sales growth came in higher than expected at 4.8%. Canada beat estimates with 9% same-store sales growth, while international stores posted a higher-than-expected increase of 8.2%.
Membership fees, a key revenue stream, came in at $1.11 billion, up from $1.03 billion a year ago. That’s also a jump from Q1, which brought in $1.08 billion.
A Costco Gold Star membership costs $60 per year, while an Executive Membership goes for $120. Some on the Street predicted last year that Costco would raise fees this summer.
Prior to earnings, Telsey Advisory Group senior managing director Joe Feldman told Yahoo Finance Live that “Costco is leading the way right now” as it continues to perform well, catering to a “a more affluent consumer” who seeks value.
E-commerce continues to gain momentum as well. In Q2, the company saw digital sales grow more than 18% compared to a year ago.
Costco’s shares are up over 60% compared to last year, handily beating the S&P 500’s (^GSPC) 29% gain. The retailer currently has 875 warehouses, with 603 locations in the US and Puerto Rico.
The earnings rundown:
Here’s what Costco reported in its fiscal second quarter versus Wall Street estimates, according to Bloomberg data:
Net sales: $58.44 billion versus $59.04 billion
Adjusted EPS: $3.92 versus $3.62 expected
Same-store sales growth: 5.8% versus 4.65% expected
US same-store sales growth: 4.8% versus 4.09% expected
Canada same-store sales growth: 9% versus 6.31% expected
Other international: 8.2% versus 6.17% expected
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Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at [email protected].
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