Costco Wholesale (COST) stock is trading slightly higher Friday after the warehouse club beat top- and bottom-line expectations for its fiscal 2025 first quarter thanks in part to impressive online sales.
In the 12 weeks ending November 24, Costco's revenue increased 7.5% year over year to $62.2 billion, driven by a 5.2% rise in same-store sales. Its earnings per share were up 12.8% from the year-ago period to $4.04.
The report also showed that e-commerce sales jumped 13% year over year, helped by the Costco app being downloaded 2.9 million times during the quarter. This brought the total number of downloads to approximately 42 million.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"E-commerce traffic, conversion rates, and average order value were all up year over year, helping to drive another strong quarter of comparable sales growth," said Costco Chief Financial Officer Gary Millerchip on the company's conference call.
The executive also noted that Costco "ended Q1 with 77.4 million paid household members, up 7.6% versus last year, and 138.8 million cardholders, up 7.2% year over year."
Millerchip added that the end of the quarter, COST "had 36.4 million paid Executive Memberships, up 9.2% versus last year. And Executive Members now represent 46.8% of paid members and 73.1% of worldwide sales."
Costco's top- and bottom-line results beat analysts' expectations. Wall Street was anticipating revenue of $62.1 billion and earnings of $3.79 per share, according to CNBC.
Is Costco stock a buy, sell or hold?
Costco Wholesale shares have had an impressive run in 2024, up nearly 51% on a total return basis (price change plus dividends) for the year to date. And Wall Street is bullish on the retail stock.
According to S&P Global Market Intelligence, the average analyst target price for the consumer staples stock is $1,003.89, representing a slight premium to current levels. Meanwhile, the consensus recommendation is a Buy.
Financial services firm Jefferies is one of the more bullish outfits on COST stock with a Buy rating and a $1,145 price target.
"COST continues to report favorable results, with a bottom-line beat even excluding the $100 million tax benefit," says Jefferies analyst Corey Tarlowe. "Traffic led the enterprise core comp growth, operating margin expanded, and digital discretionary trends were robust. Looking ahead, we remain encouraged by COST's business model to report consistent top- and bottom-line growth ahead."
Related Content
-
Ten Cheapest Places to Live in TexasProperty Tax Looking for a cheap place to live in Texas? Look no further. These counties have the lowest property tax bills in the Lone Star State.
-
AI Is Missing the Wisdom of Older Adults: What It Means for YouAI will increasingly affect your healthcare and finances, but young workers are primarily designing the systems and getting most of the jobs.
-
The Three C's to Financial Success: A Financial Planner's Guide to Build WealthConsistency, commitment and confidence in your chosen strategy are more critical to your financial success than finding the 'perfect' financial plan.
-
A Financial Adviser's Guide to Solving Your Retirement Puzzle: Five Key PiecesIf retirement's a puzzle you're struggling with, try answering these five questions. The answers will guide you toward a solution.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
After the Disaster: An Expert's Guide to Deciding Whether to Rebuild or RelocateHomeowners hit by disaster must weigh the emotional desire to rebuild against the financial realities of insurance coverage, unexpected costs and future risk.
-
A Financial Expert's Tips for Lending Money to Family and FriendsWhat starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
-
Stock Market Today: Good Feelings and Solid Data Lift StocksResilience and de-escalation defined another generally positive day for financial markets.
-
What the HECM? Combine It With a QLAC and See What HappensCombining a reverse mortgage known as a HECM with a QLAC (qualifying longevity annuity contract) can provide longevity protection, tax savings and liquidity for unplanned expenses.
-
721 UPREIT DSTs: Real Estate Investing Expert Explores the Hidden RisksPotential investors need to understand the crucial distinction between a REIT's option to buy a Delaware statutory trust's property and its obligation.
