Costco's Online Growth Fails to Offset Revenue Misses, Stock Dips
Costco missed revenue expectations for its holiday quarter, reporting $58.44 billion in revenue compared to the expected $59.16 billion, causing its stock to fall about 4% in aftermarket trading. Despite the miss, the company saw year-over-year sales growth and strong e-commerce gains, with e-commerce sales growing 18.4% in the quarter. Costco also reported increased membership sign-ups as it cracked down on membership sharing, and it has made changes to its website to improve the online shopping experience. The company's CFO, Richard Galanti, mentioned that a fee hike for membership is inevitable but did not specify when it would occur.