Grocery retailer Costco (COST) has reported mixed financial results for the final quarter of 2024 that included the year-end holidays.
The Seattle-based company announced earnings per share (EPS) of $4.02 U.S., which fell short of the $4.11 U.S. that was expected on Wall Street.
However, revenue of $63.72 billion U.S. surpassed the consensus estimate of $63.13 billion U.S. that was forecast among analysts. Sales rose 9.1% from a year earlier.
Membership fees during the final three months of last year totaled $1.19 billion U.S., with the company reporting 78.4 million paid memberships and 140.6 million total cardholders.
Worldwide, Costco’s membership renewal rate came in at 90.5%, an increase of 0.1% from the previous quarter.
The warehouse club raised its annual membership fees for the U.S. and Canada last September. It was the first fee increase since 2017.
Comparable sales, which Costco defines as sales from its warehouses and e-commerce site, rose 6.8% from a year ago, which was ahead of estimates that called for 6.4% growth.
Online sales, or e-commerce, continue to rise at a blistering pace for Costco, growing 20.9% year-over-year at the end of 2024.
In addition to groceries, the company’s top sales categories included gold and jewelry, furniture, hardware, and toys, all of which grew double digits from a year earlier.
In terms of guidance, Costco said it’s difficult to forecast due to the impact of trade tariffs imposed by the U.S. government.
Management said the company aims to minimize cost increases for its members, with only about one-third of its U.S. sales coming from imports.
However, citing tariff implications for groceries, Costco management said margins are “much tighter” but that the company will work with suppliers to mitigate impacts on consumers.
Costco’s stock has risen 30% over the last 12 months to trade at $1,026.62 U.S. per share.
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