May 28 (Reuters) – Costco Wholesale topped market expectations for third-quarter U.S. same-store sales on Thursday, helped by demand for food and other essentials at its membership-only stores.
As fuel prices exceed $4 a gallon and food costs remain high, membership warehouse clubs such as Costco have benefited from steady demand from consumers looking for value to manage household budgets.
Big-box retailer Walmart also topped quarterly sales expectations last week, but retained its annual targets as consumer spending faces increasing stress from inflation.
Last quarter, Costco trimmed prices on pantry staples such as eggs, cheese, coffee and some paper products in response to easing inflation in these categories.
The company’s quarterly U.S. comparable sales, excluding gas, rose 6.8%, compared with analysts’ average estimate of a 6.13% increase, according to data compiled by LSEG.
Costco’s total revenue, including membership fee, for the 12 weeks ended May 10 rose 12% over the year earlier to $70.53 billion, compared with the estimate of $69.81 billion.
Its net income rose 15% to $2.19 billion in the third quarter, while adjusted earnings per share of $4.93 came in line with expectations.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Shilpi Majumdar)
Comments