COST stock falls on earnings and tariff threats, but Costco’s still opening 12 new U.S. stores this year

Shares of Costco (COST) fell over 7% in midday trading on Friday after the wholesale retailer reported mixed second-quarter earnings results, missing profit estimates but beating on revenue, as the company braces for the impact of tariffs and inflation on consumer spending.

“The tariffs are very fluid right now, so it’s hard to give any predictions about what we can do, but our people are well equipped to deal with anything coming our way and we have great partnerships with our suppliers,” CEO Ron Vachris said during the company’s earnings call. “Our people are nimble and ready to go.”

Costco’s Q2 revenue came in at $63.72 billion, slightly beating analyst estimates for $63.11 billion. Meanwhile, same-store sales jumped slightly from 6.38% to 6.8%, beating forecasts for an increase of 6.4%, and e-commerce came in at an increase of 20.9%.

However, adjusted earnings per share came in at $4.02, missing estimates of $4.11. And while overall same-store sales were up, the company missed estimates in Canada and other international markets.

One advantage Costco has over some other retailers is its popular membership, whose fees make up more than 70% of its operating profits. Costco raised those fees last year for the first time since 2017; a basic Gold Star individual membership now costs $65, while an Executive membership is $120 to $130.

Another good sign: Costco announced it expects to open 12 new stores across the nation in 2025, including seven locations this spring in March and April.

Here’s a list of those seven locations:

• Brentwood, CA
• Genesee County, MI
• Highland, CA
• Prosper, TX
• Sharon, MA
• Weatherford, TX
• Stuart, FL

In addition, Vachris said the company plans to open two locations in Canada and four other international locations in the coming six months. According to Costco’s website, two of those international stores will be in Minami Alps, Japan and Ardeer, Australia.

Costco currently operates 897 warehouses, with a majority of those in the U.S. and Puerto Rico (617). Other locations include Canada (109), Mexico (41), Japan (36 ), UK (29), Korea (19), Australia (15), Taiwan (14), China (7), Spain (5), France (2), and one each in Iceland, New Zealand, and Sweden.

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