Costco Reports Strong Q3, Skips Annual Forecast: Retail Turns More Confident

The wholesale chain indicated that it will maintain its prices for now, a move that contrasts with several competing retailers, such as Walmart, which are also adopting this approach.

Costco Wholesale (COST) reported fiscal third-quarter results above Wall Street expectations on Thursday. The discount chain also stated that it would not raise product prices, unlike some other retailers, and would expedite its shipping schedule to mitigate the impact of U.S. tariffs.

Several major retailers, including Walmart (WMT), Best Buy (BBY), and Elf Beauty, have signaled upcoming price increases as they look to safeguard margins amid uncertain and uneven consumer spending.

Target (TGT) opted not to raise prices but slashed its annual outlook.

Costco's results had little impact on its shares but boosted the sentiment among Stocktwits significantly.

Management acknowledged pressure from macroeconomic factors and skipped providing an annual forecast.

For Q3, which ended May 11, the company's revenue rose 8.2% to $63.21 billion, above the analysts' estimate of $63.19 billion from LSEG/Reuters.

Earnings per share were $4.28, up 13% from the same quarter last year, and above expectations of $4.24.

Costco said comparable store sales — a key industry metric that excludes one-time factors such as store openings and closures — rose 8%. Analysts had expected 6.9%.

Shares of Costco were down 0.4% in extended trading on Thursday following the release of the results.

On Stocktwits, the retail sentiment jumped to 'extremely bullish' from 'neutral' the previous day. Message volume jumped to 'extremely high' from 'low.'

A user recommended holding the stock long-term and said the "company has been up and down lately but always bounces back strong."

Another user forecasted that the stock price could rise above $1,200.

Costco shares are up 10% this year.

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