Last week, Costco posted its Q2 2025 earnings results, providing a crucial guidepost for how consumer staples may fare this year.
These earnings delivered relatively mixed results. Net sales have jumped over 9% over last year’s numbers, while revenue outperformed expectations. Unfortunately, earrings per share came in lower than some analysts were expecting. As a result of this and other inflationary concerns, Costco’s share price has seen a notable decline over the last couple days.
That being said, investors may wish to think twice before selling off their Costco exposure. While other retail giants like Target and Best Buy have advised that President Trump’s proposed tariffs could lead to price increases, Costco has taken a more optimistic tone.
“It is difficult to predict the impact of tariffs, but our team remains agile, and our goal will be to minimize the impact on related cost increases to our members,” noted Costco CEO Ron Vachris on the recent earnings call.
Enthusiasm from the Costco team is certainly well-founded. Vacris noted that only a third of the company’s U.S. sales come from imports. These imports aren’t overly tied to potential tariff targets, either. According to Vachris, less than half of imports used for Costco’s U.S. sales come from Mexico, Canada, or China.
As such, Costco could be in a better position to provide consumer-friendly prices during a tariff showdown. In doing so, customers could be more compelled to pick up a Costco membership than endure rising prices at competing outlets.
VDC Brings Costco Exposure in a Diversified Portfolio
For advisors and investors looking to stay invested in Costco, many ETFs could provide good exposure to the company. However, one fund that could be particularly worthwhile is the Vanguard Consumer Staples ETF (VDC ).
A fund from Vanguard, VDC gives investors access to a diversified selection of consumer staples companies. While it invests in over 100 stocks, over 12% of the fund’s portfolio weight is allocated to Costco.
With Costco as the top holding, VDC can provide good returns if the company’s stock mounts a comeback. In the meantime, the fund’s diversified portfolio can help investors feel less exposed to troubles among individual companies.
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