A Costco wholesale store in Connecticut.
Lindsey Nicholson | Lindsey NicholsonpGetty Images
Costco On Thursday, the company’s quarterly earnings and sales forecast beat Wall Street expectations, in part due to higher membership fees.
Here’s how the warehouse club’s first-quarter performance compared with Wall Street expectations, according to a survey of analysts by LSEG:
- Earnings per share: $4.04, $3.79 expected
- Revenue: $62.15 billion, $62.08 billion expected
In the three months ended November 24, Costco’s net profit rose to $1.8 billion, or $4.04 per share, from $1.59 billion, or $3.58 per share, in the same period last year. Revenue increased from US$57.8 billion in the same period last year.
As U.S. households feel the cumulative impact of rising food and home prices, Costco has benefited from its reputation for selling bulk items at higher prices. The members-only club has also increased annual fee This is the first time in about seven years. This is Costco’s first quarterly earnings report since the price increase took effect in September.
Costco’s membership fee revenue was $1.17 billion, above Wall Street expectations of $1.16 billion.
The company’s comparable sales increased 5.2% year-on-year. In the United States, comparable sales also increased 5.2%.
E-commerce sales increased 13% year over year this quarter.
As of Thursday’s close, Costco shares have risen nearly 50% this year, outpacing the S&P 500’s 27% gain over the same period. Shares closed Thursday at $988.39.
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