Diamonds and Dogs

5/30/25

Costco (COST) higher on earnings. The big box discount retailer is up 3% after beating earnings by 4 cents as sales rose 8% to $63.2 billion. Comparable sales rose 8% while E-commerce sales rose 15.7%. Management at Costco is focused on lowering prices where possible, while leaning on its Kirkland brand, local sourcing and rerouted shipments.

Gap (GAP) gapping lower. The denim retailer is down 20% following earnings. Earnings were better than expected while revenue rose 2.2% to $3.46 billion. The retailer said tariffs are hitting them hard with a cost up to $150 million in its 2025 operating income and $250–300 million in its gross estimated incremental cost.