Costco (COST) is sinking 7% after the giant retailer reported higher-than-expected quarterly comparable-sales growth, but delivered earnings per share that came in below analysts' average estimate.

The Highlights of COST's Fiscal Q2 Results

The firm's sales at comparable stores jumped 9,1%, excluding gasoline and foreign currency fluctuations, versus analysts' average estimate of a 6.8% increase. In the four weeks that ended on March 2, its net sales jumped 8.8% year-over-year. On the negative side, COST generated Q2 EPS of $4.02, below analysts' mean estimate of $4.11.

A customer in a warehouse aisles, browsing the wide range of branded and private-label products.

Costco's Comments

On its earnings call, Costco reported that it was gaining market share in large items, gasoline, and consumer electronics.

"Traffic or shopping frequency increased 5.7% worldwide and 5.6% in the U.S.," CFO Gary Millerchip noted on the call.

The CFO added that the purchasing habits of the company's customers have not changed "over the last ...few quarters. "

More Information About COST

Analysts on average expect the company's EPS to jump to $18.09 in 2025 and $20.03 in 2026, up from $16.56 in 2024.

The shares have a forward price-to-earnings ratio of 56.5 times.

In the last month, COST is down 8.5%, while it has given back 4% in the last three months and is up 4% so far in 2025.

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Disclosure: None. This article is originally published at Insider Monkey.