Costco jumps after posting solid Q1 results as tariff turmoil boosts bulk shopping appeal
The Sam’s Club rival also introduced new “Scan & Pay” checkout tech at its warehouses.
Costco shares rose nearly 4% Friday afternoon as investors warmed up to the warehouse retailer’s solid Q1 earnings report.
Earnings per share came in at $4.28, narrowly beating FactSet estimates of $4.25, while revenue slightly topped expectations at $63.2 billion. Comparable sales climbed 8% and e-commerce sales jumped 16% from a year ago, excluding gas and currency shifts.
Costco also rolled out a new “Scan & Pay” feature in its app, letting members skip checkout lines and pay via smartphone. The tool is already popular at rival Sam’s Club, which is owned by Walmart and is used by one in three of its shoppers regularly.
Though Costco executives held back on giving a full-year forecast, citing tariff uncertainty, Costco could be an unlikely winner from the trade shake-up, as cost-conscious shoppers lean into buying in bulk. About a third of its US goods are imported, but the retailer said it’s been rushing shipments and rerouting products to soften the blow.
Costco shares are now up roughly 15% on the year.
