Costco will report its fiscal third-quarter results on Thursday, following a strong performance in previous months. The Issaquah-based retailer posted net sales of $23.92 billion for the four weeks ending May 3, representing a 13.0% increase year-over-year. Comparable sales also rose by 11.6%, with a 7.8% increase excluding gasoline and foreign exchange effects.
The Zacks Consensus Estimate predicts earnings per share (EPS) of $4.91 and revenue of approximately $69.5 billion, reflecting year-over-year growth of about 15% on the bottom line and 10% on the top line. The company has historically beaten EPS estimates, although guidance tends to be conservative. Notably, Costco’s renewal rate for memberships remains above 90%, which is crucial for its business model.
In comparison, Walmart’s Sam’s Club reported a deceleration in comparable sales to +3.9%, highlighting the consumer shift toward value, which bodes well for Costco. Additionally, investors are watching for potential announcements regarding special dividends and tariff-related income that could affect share movement post-earnings.
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