Costco (COST) shares were just below the flatline in pre-market trading on Friday, despite the US warehouse retailer posting quarterly results that beat Wall Street expectations. The company's results were buoyed by stronger e-commerce sales and higher membership revenue.
NasdaqGS - Delayed Quote • USD At close: May 30 at 4:00:01 PM EDT
For the three months ending 11 May, net income rose to $1.90bn (£1.41bn), or $4.28 per share, compared with $1.68bn, or $3.78 per share, in the same period a year earlier. Revenue also climbed from $58.52bn in the year-ago quarter, supported by an 8% increase in comparable sales — a key retail metric that excludes fluctuations from new store openings or closures.
Online sales were particularly strong, rising nearly 16% from a year earlier when excluding the impact of fuel prices and currency movements.
“Costco’s (COST) results suggest the company is performing strongly, though perhaps not across the board,” said Adam Vettese, market analyst at investment platform eToro. “Sales have beaten expectations, showing a spike in e-commerce and membership fees, which help foster that exclusivity of being part of the Costco club, also ticking the right way.”
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Vettese cautioned that macroeconomic pressures could still weigh on performance. “Last quarter was a miss due to cost pressures, and with the threat of tariffs looming, a business like Costco (COST) where margins are crucial does not want to feel that squeeze,” he said.
“Some might view Costco (COST) as a fairly safe defensive play, but investors should also be mindful about increased costs or outside interference playing havoc with those carefully engineered margins.
"That said, those who have held Costco (COST) shares the last couple of years will be likely pleased with the performance. With ongoing consumer uncertainty, Costco’s recent track record may continue to attract investor interest.”
Shares in Dell (DELL) gained in pre-market trading on Friday after the company posted first-quarter earnings that fell short of Wall Street forecasts but delivered stronger-than-expected revenue and issued a bullish outlook for the current quarter.
NYSE - Delayed Quote • USD At close: May 30 at 4:00:02 PM EDT
The computer and IT infrastructure group said it expects adjusted earnings of $2.25 per share in the second quarter, alongside revenue in the range of $28.5bn to $29.5bn, ahead of analyst expectations compiled by LSEG.
Company executives attributed the upbeat forecast to robust demand for artificial intelligence-related infrastructure, which tends to carry higher margins than Dell’s (DELL) traditional systems. Dell expects to ship $7bn in AI systems this quarter alone.
“We generated $12.1bn in AI orders this quarter alone, surpassing the entirety of shipments in all of fiscal 2025 and leaving us with $14.4bn in backlog,” said Jeff Clarke, Dell’s (DELL) chief operating officer.
While adjusted earnings in the fiscal first quarter missed estimates, revenue topped forecasts. Dell (DELL) maintained its full-year revenue guidance at roughly $103bn — in line with consensus — but raised its full-year earnings outlook to $9.40 per share, up 10 cents from its previous forecast.
The company’s growing focus on AI infrastructure marks a strategic pivot amid slowing demand in its traditional PC business.
Shares in Ulta Beauty (ULTA) rose about 8% in pre-market trading on Friday, after the cosmetics retailer raised its full-year profit guidance and reported quarterly results that exceeded expectations, buoyed by strong consumer demand and lower inventory losses.
NasdaqGS - Delayed Quote • USD At close: May 30 at 4:00:00 PM EDT
The company now expects full-year earnings in the range of $22.65 to $23.20 per share, up from a previous forecast of $22.50 to $22.90. The outlook revision came as Ulta (ULTA) reported adjusted earnings of $6.70 per share for the quarter ended 3 May, ahead of the $5.81 expected by analysts.
Quarterly sales rose to $2.85bn, compared with the consensus estimate of $2.79bn. Comparable sales — a key retail metric — increased 2.9% year-on-year, driven by a 2.3% rise in average transaction size and a 0.6% increase in the number of transactions.
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Ulta (ULTA) said demand was particularly strong for trendy, affordable brands such as Elf Beauty, especially among younger shoppers. New product launches, including Milk Makeup and several Korean skincare brands, also helped lift store traffic.
The retailer has also leaned into marketing initiatives and digital channels, while enhancing its appeal with celebrity-owned lines such as Rihanna’s Fenty Beauty.
Shares in Adidas (ADS.DE) traded higher on Friday, even as the sportswear group warned that escalating US tariffs could lead to higher costs and retail prices for its products in the key US market.
In a statement, the company cautioned that it had not yet determined how much of the additional cost burden would be passed on to US consumers, citing ongoing uncertainty in global trade negotiations. Adidas (ADS.DE) added the geopolitical headwinds were preventing it from upgrading its full-year guidance.
“Higher tariffs will eventually cause higher costs for all our products for the US market,” the company said.
“Given the uncertainty around the negotiations between the US and the different exporting countries, we do not know what the final tariffs will be,” it added.
“Therefore, we cannot make any ‘final’ decisions on what to do. Cost increases due to higher tariffs will eventually cause price increases, not only in our sector, but it is currently impossible to quantify these or to conclude what impact this could have on the consumer demand for our products.”
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Adidas (ADS.DE) also said it currently lacks the capacity to manufacture most of its products within the US, leaving it particularly exposed to any new trade barriers imposed by Trump.
Volkswagen (VOW.DE) chief executive Oliver Blume has pledged a “massive” increase in investment in the US, as the German carmaker seeks to cushion the impact of tariffs imposed by Trump.
In an interview with Süddeutsche Zeitung, Blume said the company had held “fair, constructive” talks with US commerce secretary Howard Lutnick, adding: “I was in Washington myself and we have been in regular dialogue ever since," according to a Reuters report.
"The Volkswagen Group (VOW.DE) wants to invest further in the USA. We have a growth strategy," he told the German newspaper.
According to Lutnick, Volkswagen (VOW.DE) is considering expanding on its existing footprint in the US with “further, massive investments” as the auto group navigates heightened trade tensions.
The commitment comes as Volkswagen (VOW.DE) undergoes significant restructuring at home. In December, the company announced plans to cut around 35,000 jobs in Germany over the next five years as part of a broader effort to reduce costs and respond to softening demand for vehicles in Europe.
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