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Costco $COST -0.85% Wholesale reported fiscal third-quarter net sales of $69.15 billion on Thursday, up 11.6% from a year earlier, as record gasoline volumes and surging e-commerce drove results above Wall Street expectations.
Total revenue, including membership fees, reached $70.53 billion. Analysts had expected $69.81 billion, according to CNBC. Net income for the quarter rose to $2.19 billion, or $4.93 per diluted share, from $1.90 billion, or $4.28 per diluted share, in the same period last year. Adjusted earnings per share of $4.93 met analyst expectations.
Vachris told analysts that gas demand hit what the company called unprecedented levels, with the quarter's closing stretch producing the chain's best-ever sales weeks. Vachris said on the call that escalating fuel costs tied to the Middle East conflict had drawn shoppers to Costco's pumps who had never used them before. "Against the backdrop of ongoing macro uncertainty, our focus is providing quality goods and services at the lowest possible price," he said.
When fuel prices are factored in, domestic comparable-store sales climbed 9.4% during the period, outpacing the roughly 7% gain analysts had forecast. Strip out currency swings and fuel price effects and the comparable-sales gain narrows to 6.6%. Online and app visits surged 37%, the company said, while digitally enabled sales increased 21.5%. The membership base expanded 4.1% year over year, and Bloomberg reported a renewal rate of 89.7% for the quarter.
