Costco Q3 sales rise 11.6% on record gas and digital growth

Costco Wholesale Corporation reported strong sales growth in its fiscal third quarter, driven by record-breaking gasoline demand and continued expansion in digital sales, though its profit margin faced pressure from investments in lower prices. The membership-based retailer announced net sales of $69.15 billion for the 12 weeks ended May 10, an increase of 11.6% compared to the same period last year.

The company’s earnings per share came in at $4.93, slightly below analyst expectations of $4.98. Net income for the quarter was $2.19 billion, a 15% increase year-over-year. Comparable sales, a key retail metric, rose 9.8% overall. Excluding the effects of gasoline price inflation and foreign exchange, comparable sales increased 6.6%.

A significant driver of the quarter’s performance was unprecedented demand at Costco’s gas stations. CEO Ron Vachris stated that the company set successive all-time volume sales records throughout the quarter, with the final five weeks becoming its top five volume weeks ever. He attributed the surge to high consumer price sensitivity as national average gasoline prices rose, noting that many members used Costco gas stations for the first time during...