In its fiscal third quarter, which ended May 10, Costco Wholesale experienced unprecedented gas sales, with CEO Ron Vachris noting that the last five weeks of the quarter were the highest volume weeks in the company's history. This surge in gas sales is attributed to rising fuel prices and the ongoing conflict in the Middle East, prompting consumers to seek more affordable options.
Costco's net sales reached $69.15 billion, an 11.6% increase from the previous year, surpassing Wall Street's expectations. The company reported adjusted comparable sales growth of 6.6%, with digital sales rising nearly 21%. Earnings per share matched expectations at $4.93, while net income rose to $2.19 billion from $1.9 billion a year earlier.
Memberships grew by 4.1%, and website traffic surged by 37%, indicating strong engagement with both existing and new members. Vachris also mentioned that Costco has begun submitting claims for tariff refunds following a Supreme Court decision, with plans to return these funds to members, reinforcing the company's commitment to competitive pricing.
Analysts had anticipated increased demand due to Costco's value offerings, which have proven effective in attracting cost-conscious consumers during uncertain economic times