March 5 (Reuters) - Costco Wholesale beat Wall Street estimates for second-quarter comparable sales on Thursday, helped by resilient holiday-season demand for affordable essentials as well as "nice-to-have" items at its membership-only stores.
With Americans increasingly focusing on value to stretch their budgets stressed by high costs of rent and gas, big box stores such as Walmart and Costco are attracting consumers across income categories.
Costco, which raised its membership fee in 2024, has also
been investing in its in-house brand Kirkland Signature.
The company was among over 1,000 businesses that sued the government saying U.S. President Donald Trump lacked legal authority to impose tariffs under the 1977 International Emergency Economic Powers Act.
While the Supreme Court struck down the emergency duties, Trump's move to enforce temporary levies on imports is adding to macroeconomic strain for consumer companies already grappling with a volatile trade backdrop and higher cost pressures.
"The stock had high expectations heading into the print given it's above-average valuation, but the market will likely continue to view the stock as a safe haven due to geopolitical volatility," said David Wagner, head of equity and portfolio manager at Aptus Capital Advisors.
The company's quarterly same-store sales, excluding gas, rose 6.7%, compared with analysts' estimates of a 5.88% rise, according to data compiled by LSEG.
Net income for the second-quarter rose nearly 14% to $2.04 billion.
The company's shares were largely unchanged in extended trading on Thursday.
(Reporting by Juveria Tabassum and Sanskriti Shekhar in Bengaluru; Editing by Alan Barona)
