What caused COST's EPS fluctuations in 2024?

Costco's EPS experienced fluctuations in 2024 due to various factors influencing its financial performance: 1. **E-commerce Growth**: Costco's e-commerce sales surged by 18.9%, indicating a strong digital growth. This shift in sales channel contributed to the company's robust financial performance, including exceeding EPS expectations. 2. **New Warehouse Openings**: The company plans to open 29 new warehouses in fiscal 2025, which is a clear indication of its expansion plans. New warehouse openings can initially be costly, but they often lead to increased sales and profitability over time. 3. **Macroeconomic Conditions**: Despite a challenging economic environment, Costco's focus on value and quality products likely helped it outperform in the retail sector. The company's strong financial performance, including a 9% increase in net income, reflects its resilience against macroeconomic headwinds. 4. **Comparison with Analyst Expectations**: Costco has a history of surpassing Wall Street's EPS projections. For Q4 2024, the company's EPS of $4.04 exceeded the forecast of $3.78, marking a positive surprise for investors. This trend suggests that the company's operational efficiency and strategic initiatives are effectively boosting its earnings. In summary, Costco's EPS fluctuations in 2024 were primarily driven by its strategic growth initiatives, such as e-commerce expansion and new warehouse openings, along with its ability to navigate challenging economic conditions and exceed analyst expectations.