Costco Tops Views. These Retailers Retreat On Results; One Surges.

Costco Wholesale rounded out a busy Thursday for retail earnings by clearing expectations in an afterhours report. Other shares were mixed during Thursday trade. Victoria’s Secret and BJ’s Wholesale retreated on their earnings. Burlington surged out of a buy zone.

Costco Wholesale’s (COST) reported a 13% increase in Q2 earnings to $4.58 per share, topping views for $4.55 per share. Total revenue surged 9% to $69.6 billion. That beat estimates for $69.29 billion in sales.

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Costco’s earnings growth accelerated the past three quarters leading up to the report, posting an 18% increase in Q1. The wholesaler’s revenue growth has consistently hovered around 8% during that period.

Overall comparable sales increased 7.4% for the quarter, outpacing FactSet expectations for 6.3% growth and accelerating from a 6.8% increase last year.

Digitally-enabled comparable sales increased 21.8%.

However, Costco noted that the Lunar New Year and Chinese New Year negatively affected February’s other international sales and total company sales, by 4% and 0.5%, respectively.

Membership fee revenue grew more than 13% to $1.36 billion, slightly ahead of analyst forecasts for $1.33 billion.

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Bernstein, JPMorgan and BTIG all raised their price targets on COST stock and kept buy ratings on the shares, The Fly reported. Bernstein lifted its price target by $15, while JPMorgan and BTIG both increased their targets by $10.

Costco Stock Slides From Buy Zone

COST stock ticked higher early Friday. Shares skidded 2.4% Thursday ahead of earnings to slide back below a buy point for a cup-with-handle base.

Costco first broke out above the 993 buy point on Feb. 4, but has since swung in and out of the buy zone.

Thursday’s early move put COST stock back below its 21-day exponential moving average, as shares pared their advance on the year to less than 14%.

Victoria’s Secret, BJ’s Wholesale Retreat

Victoria’s Secret (VSCO) led the sell-off for falling retailers on Thursday after announcing it initiated a strategic review of its DailyLook premium subscription service, which it considers a “noncore asset.”

The clothing maker reported a 6.5% increase in earnings to $2.77 per share adjusted, beating views for $2.52 per share. Revenue increased 8% to $2.27 billion, which cleared expectations for $2.23 billion.

Victoria’s Secret reported $85 million in tariff pressures for the year, including a $60 million hit in Q4. The company expects to record $160 million in tariff costs for 2026.

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VSCO stock tumbled 12% Thursday, undercutting its 50-day moving average and wiping out its stock gains since early December. Shares fell another 7% Friday.

BJ’s Wholesale (BJ) rose about 1% Friday. Shares declined 1.5% Thursday on BJ’s outlook, falling near their 50-day moving average.

BJ’s reported a 3.2% increase in adjusted earnings on 5.5% revenue growth. Comparable club sales, excluding gas sales, grew by 2.6% from last year.

For 2026, BJ’s expects earnings to range from $4.40 per share to $4.60 per share adjusted, the midpoint below FactSet predictions for $4.66 per share. The midpoint for its comparable sales growth forecast was also slightly below estimates.

Burlington Jumps Out Of Buy Zone

Burlington Stores (BURL) stock jumped 6.9% on results Thursday, exiting a buy zone for a double-bottom base.

The off-price retailer topped expectations with a 20% increase in earnings on 11% revenue growth. Comparable store sales increased 4%, outpacing estimates for 2.8% growth.

Burlington expects full-year earnings to range from $10.95 to $11.45 per share adjusted, with the midpoint ahead of FactSet forecasts for $11.17 per share. The company guided for 8% to 10% total sales growth, which was in line with analyst views for an 8.8% increase. For the year, Burlington expects same-store sales to rise between 1% and 3%, while Wall Street sees comparable sales rising 2.3%.

BURL stock on Thursday surged above the 298.02 buy point from a double-bottom base, just above the 5% buy range IBD recommends. Shares first broke out on Jan. 2. The stock has since swung above and below the buy range.

Burlington fell 4.8% Friday to drop back in the buy zone and pare its 11% advance so far this year.

You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison.

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