Why did COST's Q4 2024 revenue fall short of forecasts?

Costco's Q4 2024 revenue fell short of forecasts due to a combination of factors: 1. **Consumer Behavior**: Costco's revenue was impacted by changes in consumer spending habits, particularly in their purchasing of higher-priced items. As inflationary pressures and economic uncertainty increased, shoppers became more selective with their spending, leading to a decline in sales of luxury items such as furniture, home goods, and sporting equipment. 2. **Gasoline Prices**: The decline in gasoline prices also contributed to the revenue shortfall. Costco's revenue is sensitive to fuel price fluctuations since fuel sales are a part of their merchandise revenue. Lower gasoline prices reduced the overall revenue. In summary, Costco's Q4 2024 revenue fell short of forecasts due to cautious consumer spending on higher-priced items and lower gasoline prices.