Core Insights - Tokyo's Consumer Price Index (CPI) rose by 3.6% year-on-year in May, surpassing market expectations of 3.5% and up from 3.4% in April, indicating persistent price pressures across Japan [1][1][1] - The Bank of Japan has revised its price forecasts, acknowledging that U.S. tariffs may hinder economic growth, while also becoming more cautious about the impact of rising food prices on overall consumer inflation [1][1][1] - Bank of Japan Governor Kazuo Ueda emphasized the need to closely monitor how rising food prices, particularly rice, could affect Japan's potential inflation, despite expectations of easing food inflation [1][1][1]

Core Viewpoint - Costco's Q2 FY2025 financial results show strong growth in revenue and comparable sales, but profits fell short of expectations, indicating potential inflationary pressures in the U.S. economy [1][7][10]. Sales Performance - Overall comparable sales growth for Costco was 6.8%, significantly higher than the previous quarter and exceeding market expectations by 0.4 percentage points. When excluding fuel price fluctuations and currency effects, the comparable sales growth reached 9.1%, a 2 percentage point increase from the previous quarter [1][10]. - The sales growth can be attributed to a 5.7% increase in customer traffic and a 1% increase in average transaction value. This quarter marked the first time since Q1 FY2023 that the average transaction value increased by over 1% year-over-year [1][11]. Regional Analysis - In terms of regional performance, comparable sales in the U.S., Canada, and other international markets grew by 8.3%, 4.6%, and 1.7%, respectively. The U.S. market was the primary driver of growth, with a 3.1 percentage point increase from the previous quarter [2][12]. - Excluding currency and fuel price impacts, comparable sales growth in Canada and international markets also reached 10% [2][12]. E-commerce Growth - E-commerce sales surged by 21% year-over-year, significantly surpassing the expected 15% growth. Online traffic increased by 13%, and average order value rose by 10%, indicating a strong upward trend in pricing [3][13][14]. Membership Fees - Membership fee revenue for the quarter was $1.19 billion, a 7.4% year-over-year increase, but below the market expectation of 9.5%. The number of paying members increased by 1 million, representing a 6.8% year-over-year growth, which is the lowest growth rate in recent times [3][15][16]. Financial Metrics - Total revenue for the quarter reached $63.7 billion, a 9% year-over-year increase, driven primarily by strong product sales. The gross profit margin for merchandise sales was 10.9%, a slight increase of 0.05 percentage points year-over-year [4][17][19]. - Operating profit was $2.32 billion, reflecting a 12.3% year-over-year increase, although it fell short of the market expectation of $2.33 billion. Net profit was $1.79 billion, a 2.6% year-over-year increase, which was below the expected $1.84 billion [5][22]. Cost Management - Selling and administrative expenses totaled $5.85 billion, a year-over-year increase of 8.1%, which was slightly lower than the revenue growth rate. This resulted in a decrease in the expense ratio to 9.06% [4][18].