Following their fiscal Q4* earnings release on Thursday, Costco’s stock declined slightly as their results disappointed investors despite strong topline results and broad-based growth across many categories. Costco is allowing its margin to run as low as it has been in at least ten years and is refusing to raise its member prices for now, but these strategic decisions are helping the company maintain its strong value proposition for customers—a decision that appears to be working well, as topline revenue, memberships, and traffic continue to grow.
*Note: Costco’s fiscal year runs from September to August, making their fiscal Q4 (16 weeks from mid-May to August), comparable to other retailers’ Q2.
You can download the full Harvest Group Q2 2022 Costco Earnings recap with unique takeaways for suppliers here:
