Costco Wholesale Corp. surpassed profit expectations for the quarter ending November 24, 2024, showcasing its resilience in a challenging retail environment. Earnings hit $4.04 per share, boosted by strong sales of food, jewelry, and home furnishings, alongside online growth. A $100 million tax benefit tied to stock-based compensation also supported the profit beat.
Costco’s affluent, loyal customer base—reflected in a 90% membership renewal rate—continues to insulate the company from economic pressures. The retailer’s value-driven model, featuring jumbo-sized products and its popular Kirkland brand, draws consistent traffic, even as consumers seek deals amid lingering inflation concerns. Comparable sales, excluding gasoline and currency impacts, rose 7.1% this quarter.
The holiday season has seen strong sales of seasonal items and e-commerce drivers like furniture. Shoppers are shifting spending from dining out to groceries, prioritizing both premium and budget-friendly products.
Earlier this year, Costco raised membership fees and expanded scanner installations to curb card-sharing. Despite a slight dip in shares recently, the stock remains up 50% year-to-date. As consumers remain cautious yet value-focused, Costco’s adaptability and loyal customer base solidify its position as a retail leader.
