Costco(US:COST) Zhi Tong Cai Jing·2025-05-29 23:31Core Viewpoint - Costco's third-quarter earnings exceeded expectations, demonstrating its resilience amid tariff challenges and economic uncertainty, supported by its scale and loyal membership base [1] Financial Performance - Costco reported third-quarter revenue of $63.2 billion, an 8.0% year-over-year increase, surpassing market expectations [1] - Earnings per share reached $4.28, exceeding analyst forecasts [1] - Membership fee income for Q3 was $1.24 billion, up from $1.12 billion in the same period last year [1] - Net profit for the quarter was $1.9 billion, compared to $1.68 billion in the previous year [1] Sales and Market Trends - Same-store sales growth, excluding fuel and currency effects, was 8% [1] - E-commerce sales increased by approximately 16%, with both online and offline traffic showing improvement [1] - Best-selling categories included gold, toys, and health and beauty products, indicating strong consumer demand despite a focus on essential goods [1] Strategic Responses to Tariffs - The CEO indicated that Costco is implementing various strategies to mitigate tariff impacts, such as sourcing products from lower-tariff countries and increasing local procurement [2] - The company is evaluating potential price adjustments on goods affected by tariffs, while maintaining prices on essential imports from Central America [2] - Recent declines in commodity costs have allowed for price reductions on core consumer goods like eggs and butter [2] Consumer Behavior and Economic Outlook - Costco's membership base is relatively affluent, providing a buffer against economic fluctuations [3] - The company has historically prioritized membership growth and customer loyalty over short-term profit margins [3] - Despite stable consumer spending, the inflationary effects of tariffs are becoming evident, particularly in categories like clothing, electronics, and home goods [3]