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Costco shares slip on 2Q revenue miss

Published 2024-03-08, 08:57 a/m
© Reuters.  Costco shares slip on 2Q revenue miss

Proactive Investors - Costco Wholesale Corporation (NASDAQ:COST, ETR:CTO) shares traded lower ahead of Friday’s opening bell after the big box warehouse retailer reported a revenue miss for the fiscal second quarter.

The company posted a 5.7% year-over-year increase in sales with total revenue coming in at $58.44 billion, short of Wall Street estimates of $59.16 billion.

Revenue from membership fees was $1.11 billion, slightly ahead of estimates of $1.10 billion and an 8.2% year-over-year increase.

It noted a shift in the fiscal calendar and falling gasoline prices negatively impacted its sales.

E-commerce sales, on the other hand, surged by 18.4% which Costco CFO Richard Galanti said on the company’s earnings call was led by sales of gold and, more recently, silver.

The company began selling gold bars online back in September and sold more than $100 million worth during the first quarter.

Earnings per share of $3.92 topped estimates of $3.62, attributed to easing freight and commodity costs.

Costco shares traded 3.8% lower at about $755 before the market opened on Friday.

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