Costco tops earnings, revenue estimates as warehouse club wins over younger members

Financial Performance - Costco reported a net income of $2.61 billion, or $5.87 per share, for the fiscal fourth quarter, an increase from $2.35 billion, or $5.29 per share, a year earlier [1] - Revenue for the quarter was $86.16 billion, surpassing the expected $86.06 billion [7] Sales Metrics - Same-store sales rose by 6.4% excluding the impact of gas prices and foreign exchange, marking two consecutive quarters of decelerating growth [2] - E-commerce sales increased by 13.5% compared to the previous year, also excluding gas prices and foreign exchange impacts [2] Market Position and Strategy - Costco has opened new locations and attracted younger members, with nearly half of new signups being individuals under 40 [3] - The company is well-positioned to handle higher tariffs due to its grocery-focused sales and flexible merchandise selection [4] - Actions have been taken to mitigate tariff-related costs, including expediting orders and sourcing more items locally [5] Stock Performance - Over the past five years, Costco's shares have increased by approximately 180%, but have underperformed in the current year with just over 2% growth compared to the S&P 500's over 12% gains [6]