Costco Shares Dip Despite Earnings Beat as Growth Concerns Linger

Costco Wholesale's stock fell approximately 1% despite reporting fiscal Q4 earnings that surpassed analyst expectations. The retailer posted EPS of $5.87 versus $5.81 estimates, with revenue reaching $86.16 billion against an $86.06 billion forecast. Same-store sales grew 6.4%, outperforming the projected 5.9% increase.

E-commerce sales showed particular strength, climbing 13.6% year-over-year. However, the market reaction reflects growing concerns about decelerating growth trends, with same-store sales expansion slowing for two consecutive quarters. Costco continues physical expansion with 24 new locations opened during the period.

Wall Street maintains a Moderate Buy rating on COST shares, though investor sentiment appears cautious as macroeconomic conditions show signs of softening. The disconnect between fundamental performance and market response highlights shifting priorities in retail sector valuation.