Costco (COST) is set to report its fiscal first quarter results as inflationary-weary shoppers turn to the wholesale retailer.
Adjusted earnings per share are expected to come in at $3.81, per Bloomberg consensus estimates. Revenue is expected to come in at $62.14 billion. Same-store sales, excluding fuel, are expected to grow 6.26%, boosted by its international business, followed by the US and Canada.
The company is projected to clock higher foot traffic in the quarter, up 6.87% compared to a year ago. But Wall Street expects transaction growth to decline 0.40%.
Year to date, Costco stock is up more than 50%, outpacing the 27% gain for the S&P 500 (^GSPC).
Here’s what Wall Street expects Costco to report for its fiscal first quarter, which ended Dec. 4, 2024, compared to the previous year’s fiscal first quarter results:
Revenue: $62.14 billion versus $57.8 billion last year
Adjusted earnings per share: $3.81 versus $3.58
Total company comparable sales growth, excluding fuel: 6.26% versus 3.9%
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US same-store sales growth: 6.14% versus 2.6%
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Canada same-store sales growth: 5.68% versus 8.2%
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Other international sales growth: 7.08% versus 7.1%
E-commerce growth: 14.1% versus 6.3%
Membership fee revenue: $1.17 billion versus $1.08 billion
On Sept. 1, Costco hiked the price of its Gold Star membership by $5 to $65 and the price of its Executive membership by $10 to $130. Wall Street expects the hike to be reflected in this quarter’s results.
It was the first time the company hiked its membership fees since 2017, and Costco said it delayed the increase until the team felt like inflation started to dissipate and consumers’ spending power returned.
As of the previous quarter, the change is expected to impact around 52 million memberships, a little over half of which are Executive memberships. The fee hike is expected to grow membership income by high single digits to low double digits.
Membership fee income is expected to come in at $1.17 billion, more than the $1.08 billion reported last year.
The company also doubled down on scanning membership cards at the door, which CEO Ron Vachris said allowed operators to know real-time foot traffic and prompt customers to renew memberships.
“Membership growth remains healthy as consumers seek value and existing members continue to trade up to the Executive membership level,” Joseph Feldman of Telsey Advisory Group wrote in a note to clients.
Costco operates 891 warehouses worldwide as of last quarter. Wall Street expects that to grow to 895.
Its e-commerce business is also expected to have another stellar quarter, up 14.1%. Sales in the previous quarter were powered by growth in appliances, tires, toys, gift cards, and food, health, and beauty aids, among other items like gold bars.
