Costco's (COST.US) Q2 earnings fall short of market expectations amid a dip in consumer confidence.

Costco (COST.US) reported second-quarter profits below Wall Street expectations for fiscal 2025, with the company reporting EPS of $4.02, below the average estimate of $4.11; revenue of $63.72 billion, up 9.0% YoY, topping expectations. Net profit was $1.79 billion, compared to $1.74 billion a year ago. Costco's comparable sales grew 6.8% in the quarter, with 8.3% growth in the US, 4.6% in Canada, and 1.7% in international markets. Membership fee revenue was $1.19 billion, compared to the consensus estimate of $1.22 billion and $1.11 billion a year ago. Costco said it continues to steal market share from retail peers such as Walmart and Target, either on a comparable store basis or through its e-commerce business. Over the past few weeks, retailers have become more cautious. Target said some items, such as fresh produce, could see price increases soon, while warning that it's too early to predict when its own stores will see changes. Home Depot and Lowe's said they expect little change in interest rates or the broader real estate market. US consumer confidence fell 2.1% in February, the largest drop since August 2021, amid concerns about inflation, tariffs and employment.