Costco 3Q25 Revenue Up 8% YoY, Misses Estimates on Strategy Shift

Costco reported third-quarter revenue of US$61.96 billion, an 8% year-over-year increase but below Wall Street’s average estimate of US$63.19 billion, according to LSEG data. Earnings, excluding certain items, came in at US$4.28 per share, narrowly exceeding analysts' US$4.24 projection.

The retailer attributed its performance to adjustments in its import strategy, pulling forward shipments originally slated for summer and redirecting goods from high-tariff regions to non-US markets. These measures aimed to offset the impact of ongoing US tariffs.

Unlike Walmart, which plans to raise prices this month, Costco emphasized that price hikes remain a "last resort." Target, meanwhile, has held prices steady but revised its annual outlook downward.

Tariffs on Chinese imports, combined with weak consumer sentiment, at its lowest in nearly three years, have pressured retailers. Despite these challenges, Costco reported an 8% rise in same-store sales (excluding gasoline), surpassing the 6.96% consensus estimate. Strong demand for private-label products and bulk essentials drove this growth.

“As inflation and supply chain issues push more consumers toward bulk purchasing, warehouse clubs like Costco are increasingly appealing,” noted Zak Stambor, an eMarketer analyst.

Costco’s stock, up 10% year-to-date, remained flat in after-hours trading following the earnings release.