Costco reported better-than-expected quarterly profit, signaling that the retail giant continues to benefit from sustained sales growth. In its second quarter, revenue reached $69.6 billion, up 9.2% year over year and surpassing expectations by $280 million.

U.S. comparable sales increased 5.9%, slightly ahead of the market consensus of 5.7%. Excluding the impact of gasoline price changes and currency fluctuations, U.S. comparable sales rose 6.4%, while overall comparable sales increased 6.7%.

Both figures exceeded broad market expectations. With bulk packaging and a distinctive merchandise mix, Costco continues to attract value-conscious consumers, particularly higher-income households, allowing it to gain market share. The retailer has also expanded its e-commerce and delivery services and introduced exclusive shopping hours for premium members.

According to company filings, global and U.S. membership renewal rates were slightly lower than the same period last year but largely in line with the previous quarter. Gold, jewelry, toys, and small electronics were among the best-selling categories during the quarter.

Costco operates more than 800 stores worldwide. Its rotating product assortment continues to resonate with consumers. Shoppers must pay an annual membership fee and typically belong to higher-income demographics, which remain a key driver of U.S. consumer spending.

Costco has been working to close the gap in e-commerce, and its digital sales growth has outpaced overall revenue growth. In the most recent quarter, e-commerce sales rose nearly 22%, exceeding average expectations.

The retailer is partnering with third-party delivery companies such as Instacart and expanding services like cake delivery and prepared food platters. These efforts are aimed at attracting younger consumers, although this segment tends to have lower membership renewal rates compared to other customer groups.

Market Interpretation:

The U.S. Court of International Trade ruled that U.S. Customs and Border Protection must refund tariffs previously collected under the International Emergency Economic Powers Act. The decision is expected to accelerate the refund process for companies that paid related tariffs over the past year. Large retailers such as Costco, logistics giants like FedEx, and many smaller businesses burdened by higher import costs could potentially benefit from this ruling.