Costco Reports Strong Q2 Growth With Soaring Revenue, EPS, and Membership Income
Costco Wholesale has reported impressive growth in the latest quarter, with revenue and earnings per share (EPS) surging by 8% and 11% respectively, surpassing analysts' expectations. The retailer also expanded its footprint and digital presence, while maintaining strong membership renewal rates.
Costco opened 24 new stores in 2025 and plans to add 30 more in 2026, demonstrating its commitment to expansion. This growth is supported by a robust membership base, with a high renewal rate of 93% among U.S. and Canadian customers. The retailer's e-commerce sales also soared by 13.5% in the latest quarter, accounting for about 7% of total sales, indicating a shift towards digital shopping.
Costco's customer base is affluent, with an average annual household income of approximately $125,000. Notably, about half of the retailer's new memberships each year come from customers under the age of 40, suggesting a strong appeal to younger generations. Despite missing analysts' estimates for same-store sales, which grew by 6.5%, Costco's membership income rose by 14% in the latest quarter, reflecting the value customers find in its membership program.
Costco Wholesale's share price has risen by 180% over the past five years, outpacing the S&P 500's return of 99%. The retailer's strong financial performance, expansion, and digital growth, coupled with its loyal customer base, position Costco well for continued success in the competitive retail landscape.
