Overview
- Costco reported much stronger-than-expected fiscal third-quarter results for the period ended May 10 with year-over-year sales and earnings gains that analysts called a blowout.
- On June 3 the company said total May net sales reached $24.01 billion and comparable sales for the four weeks ended May 31 rose 12.5%, led by a 13.7% gain in the U.S.
- Digitally enabled and e-commerce sales were major drivers, with digitally enabled sales up about 21.5% in Q3 and e-commerce comps jumping roughly 21.1% in May.
- Membership strength supported the results, with overall membership growing 4.1%, an adjusted membership fee up about 7%, and renewal rates near 92.2% in North America and 89.7% worldwide.
- Higher gasoline volumes and gas-station use are boosting traffic and top-line growth but are compressing gross margins and creating comparability effects that leave investors weighing growth against margin and valuation risks.