Costco has built a reputation for offering quality products at affordable prices. In a time when consumers are feeling the pinch of inflation and economic uncertainty, the retail giant just shared a mixed bag of news. While Costco missed its recent sales estimates, it’s sticking to what it does best—keeping prices steady. For now, the company says it won’t raise prices, and that’s good news for millions of shoppers.

Let’s break down what’s happening and what it means for both investors and everyday Costco members.

Costco Q3 2025 Sales Miss Expectations Amid Lower Consumer Spending

On May 29, 2025, Costco released its earnings report for the fiscal third quarter. Analysts expected the company to bring in $63.19 billion in revenue, but the actual number came in at $61.96 billion.

That’s a clear revenue miss.

This gap in performance is largely due to declining consumer spending, especially on non-essential items. With high interest rates and rising living costs, shoppers are holding back on big-ticket purchases like furniture, electronics, and appliances.

The retail industry is feeling the impact across the board, and even wholesale clubs like Costco aren’t immune.

Costco Earnings 2025 Show Strong Profits Despite Revenue Shortfall

Despite lower-than-expected sales, Costco’s earnings per share (EPS) hit $4.28, slightly beating Wall Street’s forecast of $4.24.

So what’s driving profitability?

Costco continues to benefit from its efficient operations, loyal membership base, and value-driven private-label products such as Kirkland Signature. These in-house brands help maintain strong margins even when demand slows.

Interestingly, same-store sales—excluding gas—rose by 8%, beating the expected 7%. This proves that core members are still spending, just more selectively.

Costco Won’t Raise Prices in 2025 Despite Economic Pressures

With revenue falling short, many expected Costco to raise prices to offset the dip. But during the earnings call, executives reassured customers that no price hikes are coming—at least not yet.

Costco’s pricing strategy remains unchanged.

“We’re committed to value,” a company spokesperson said. “Price hikes would go against what our members expect.”

This no-hike policy stands in contrast to other major retailers like Walmart, which are increasing prices due to ongoing cost pressures.

Costco’s Response to US Tariffs and Cost Pressures in 2025

One of the biggest challenges for retailers this year has been the return of U.S. tariffs on Chinese imports. These new tariffs make it more expensive to bring in electronics, clothing, and various other goods.

Costco, however, is taking a strategic approach. The company is rerouting shipments, sourcing more goods locally, and even shifting some production of Kirkland Signature items to where they’re sold.

In addition to avoiding major price increases, Costco has lowered prices on essential grocery staples like eggs, butter, and olive oil. Egg prices alone are down by 10% year-over-year.

What Costco’s Price Stability Means for Shoppers in 2025

For the average Costco member, the decision to avoid price hikes is a relief. In a time when food and fuel prices are rising, Costco’s strategy offers much-needed price stability.

This is more than a PR move. Costco’s membership model depends on consumer trust. If prices rise without reason, members might not renew their subscriptions.

So, while sales fell short, Costco’s focus on affordability helps retain long-term loyalty. Shoppers continue to see Costco as a reliable destination for bulk savings.

Costco Stock Performance 2025 Shows Investor Confidence

For investors, the missed sales estimates are a slight setback. But the company’s stock hasn’t taken a hit. In fact, Costco shares are up 10% year-to-date.

The fact that profits rose and expenses are under control signals long-term strength. Wall Street views Costco’s no-price-hike policy as a smart move that will pay off in the long run.

Costco’s customer-first approach may limit short-term margin growth, but it enhances brand loyalty and market share. In today’s retail landscape, that’s a winning formula.

Final Take: Costco’s 2025 Strategy Focuses on Value and Trust

Costco didn’t meet sales expectations this quarter, but it’s not panicking. Instead of raising prices to cover the gap, it’s choosing to protect its reputation as a value-first retailer.

The company is handling inflation, tariffs, and economic slowdown with a smart mix of cost-cutting, pricing discipline, and brand loyalty.

In a world where most companies are raising prices, Costco is doing the opposite—and that’s a major reason why both customers and investors continue to back the brand.

Key Takeaways for Shoppers and Investors

Costco’s Q3 revenue: $61.96 billion, missing estimates
EPS: $4.28, beating forecast
Same-store sales (excluding gas): up 8%
No price hikes planned in 2025
U.S. tariffs managed through local sourcing and rerouting
Essential food items like eggs and butter see price reductions
Stock performance: up 10% year-to-date