Costco reported fiscal Q3 results on May 29th after the market closed, with net sales increasing 8.0% to $61.96B and comparable store sales also up just under 8.0%.
Overall earnings met expectations, with Costco reversing the margin pressure noted by analysts last quarter, but the company did stress some margin volatility on the horizon due to receipt timing related to tariffs. Renewal rates remain strong (92.7% for US/Canada in the quarter) despite the membership fee increase implemented last year, which is contributing a sizable tailwind to membership income growth.
We remain confident in Costco’s positioning relative to the rest of retail, as the company continues to deliver high-quality items at sharp value, bolstered by Kirkland Signature strength and expanded sourcing flexibility amid tariff uncertainty.
*Costco’s fiscal year runs from September to August, making their fiscal Q3 comparable to other retailers’ Q1 results.
Download Harvest Group’s full earnings recap with unique takeaways for suppliers here:
