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Costco says customers could stay cautious due to inflation and tariffs. ‘When it rains, it rains on everyone,’ CEO says. - MarketWatch

1. Costco reported second-quarter revenue of $63.72 billion, exceeding estimates. 2. Same-store sales grew 6.8%, surpassing forecasts of 6.4%. 3. The company anticipates 28 new store openings this fiscal year. 4. Tariff impacts on pricing are uncertain but could affect consumer spending. 5. Shares fell 1.2% after hours, yet the stock is up over 30% YTD.

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FAQ

Why Neutral?

Mixed results with strong revenue but cautious consumer behavior and future tariffs raise uncertainties.

How important is it?

The revenue outperformance is significant, yet mixed signals about consumer spending create volatility.

Why Short Term?

Current cautious consumer spending sentiment impacts immediate sales forecasts, unlike long-term growth potential.

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