Costco Q2 Revenue Slips Slightly
Costco $Costco (COST.US)$ posted their Q2 earnings results and that it beats most expectations. They saw a slight miss in quarterly revenue, coming in at $55.27 billion, but up 6.5% from a year ago.
![Costco Q2 Revenue Slips Slightly](https://ussnsimg.moomoo.com/71066769/editor_image/d208a711f8a8350a8f0ba88379c76103.jpg/bigmoo)
Here's what Costco reported, compared to Wall Street estimates:
Revenue: $55.27 billion versus $55.58 billion expected
Adjusted earnings per share: $3.30 versus $3.21 expected
Same-store sales: up 6.8% versus up 6.16% expected
United States: up 5.8% versus up 5.56% expected
There is a clear shift in consumer demand away from discretionary spending.
Evidently, the company saw an increase in sales of fresh food, food and sundry categories, but a drop in non-food items such as apparel, jewelry, and electronics.
This change in demand is similar to results from Target and Walmart’s latest earnings.
On another note, there could be a potential hike to its membership fees.
With their membership-fee being virtually 100% margin, this translated directly to earnings growth. This quarter, membership fees brought in $1.03 billion, up 6.2% from a year ago and a tick higher than Wall Street estimates of $1.04 billion.
So, with the hike coming in, this can be great news for Costco’s shareholders!
Let me know what you think about the potential hike of membership fees.
Source: Yahoo Finance
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