Costco Shares Plummet 7.96% in Two Days Despite Revenue Surge and Market Gains

In recent financial developments, Costco (COST) has faced a challenging period as the company's stock experienced a significant decline. On March 7th, the stock fell 6.07%, contributing to a cumulative two-day drop of 7.96%. This drop marked the lowest trading price since January 2025.

Following the release of its 2025 fiscal second-quarter earnings, Costco reported a net profit of $17.88 billion, showing a moderate year-over-year increase of 2.58%, slightly below market expectations of $18.2 billion. Earnings per share were recorded at $4.02, missing the expected $4.09. On a more positive note, the company saw revenues of $637.23 billion, representing an impressive 9.04% growth, surpassing the anticipated $630.7 billion.

Costco's comparable sales improved by 6.8% for the quarter, with the U.S. leading at an 8.3% increase, followed by Canada at 4.6%, and international markets at 1.7%. However, membership fee income was slightly disappointing at $11.9 billion, compared to the anticipated $12.2 billion and last year's $11.1 billion.

The retail giant has been strategically gaining market share from competitors like Walmart and Target, through both storefront and e-commerce avenues. Despite these gains, the outlook appears cautious amidst various economic signals. Recent sentiments in the retail industry suggest an anticipated price rise in goods such as fresh produce, with companies like Target emphasizing the unpredictability of future pricing adjustments.