Costco Drops as Difficult Macro Weighs on Consumers

Costco (COST:US) reported its fiscal fourth-quarter results, including earnings per share of $4.86, surpassing the analyst estimate of $4.78. 

Costco's total company comparable sales, including gas and currency effects, increased by 1.1%, slightly below the estimated growth of 1.87%. U.S. comparable sales grew by 0.2%, falling short of the estimated growth of 2.29%. 

Shares fell 2% in early Wednesday trade.

In Canada, comparable sales increased by 1.8%, missing the estimated growth of 2.22%. Comparable international sales grew by 5.5%, also below the estimated growth of 6.78%.

Total revenue reached $78.94 billion, representing a 9.5% year-over-year increase, surpassing the estimated revenue of $77.72 billion. Net sales amounted to $77.43 billion, showing a 9.4% year-over-year increase, exceeding the estimated $76.75 billion.

Additionally, membership fees increased to $1.51 billion, marking a 14% year-over-year growth and surpassing the estimated $1.46 billion.

Shares also slipped after the CFO suggested on the earnings call that Costco doesn’t expect to increase its membership fees in the near term.

Congressman Ro Khanna was actively buying COST shares throughout the year. On the other hand, Senator Dan Sullivan disclosed a few days ago that he sold some COST shares in August.

COST stock is up 23.2% year-to-date, outperforming the S&P 500.