Retail giant Costco Wholesale Corporation (NASDAQ:COST) could highlight the impact of tariffs on business when the company reports first-quarter financial results Thursday after market close.
Here are the earnings estimates, what experts are saying before the report and the key items to watch.
Earnings Estimates: Analysts expect Costco to report first-quarter revenue of $67.17 billion, up from $62.15 billion in last year's first quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in three straight quarters and in six of the last 10 quarters overall.
Analysts expect Costco to report first-quarter earnings per share of $4.28, up from $3.82 in last year's first quarter.
The company has beaten analyst estimates for earnings per share in two straight quarters, and in eight of the last 10 quarters overall.
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What Experts Are Saying
In his newsletter, Jay Woods of Freedom Capital Markets said concerns about membership growth and margin pressure are modest.
What hasn't been modest are tariff concerns.
"Costco has seemed to struggle with the new tariff landscape," Woods said.
The market expert highlighted Costco as one of the latest companies to file a complaint in the U.S. Court of International Trade over tariffs.
"Rising merchandise costs (especially on imported or inflation-sensitive good) and challenging consumer spending dynamics raise concern that margin pressure may persist if inflation or tariffs disrupt cost inputs. We should hear more on these issues on their call."
Woods said Costco shares have rallied after five of their last seven earnings results, but shares are down year-to-date.
"The stock has virtually gone nowhere this last year."
JPMorgan analyst Christopher Horvers said Costco's November U.S. core sales were softer than expected. This could raise questions about consumer spending for the holiday season.
The analyst maintained an Overweight rating on Costco while lowering the price target from $1,050 to $1,025.
Horvers was cautious on the latest report, but warned investors about reading too much into monthly reports.
The analyst was positive on Costco's traffic trends and ticket growth, along with international locations outperforming for the month of November.
Telsey analyst Joseph Feldman said Costco is executing well, given the uncertain operating environment, in a recent note.
The analyst maintained an Outperform rating on Costco with a price target of $1,100.
Feldman said Costco will likely continue to gain retail market share and see higher membership renewal rates.
Key Items To Watch
Tariffs are likely top of mind for investors and analysts ahead of Costco's earnings report and conference call.
The company's lawsuit over tariffs will put a spotlight on their impact on the company's financials and what the Supreme Court future ruling could mean. Costco's lawsuit said the president lacks the authority to impose tariffs.
Costco has been hurt by tariffs and tried to minimize the impact by increasing production of its Kirkland Signature brand items.
The company's fourth-quarter results showed strong revenue growth and comp sales, with all regions up at least 5% year-over-year for comparable sales growth. A previous membership fee increase in September 2024 also helped boost membership revenue in the quarter.
A Placer.ai report said Costco traffic was up 6.0% year over year in the third calendar quarter. Costco's first-quarter results will include the months of September, October and November.
The report showed Costco foot traffic up 5.1% year-over-year in September and up 9.8% year-over-year in October.
Costco Price Action
COST stock trades at $874.49 on Wednesday, versus a 52-week trading range of $871.09 to $1,078.24. Costco shares are down 3.9% year-to-date in 2025.
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