Costco beats quarterly sales estimates on resilient demand for essentials
COST•Costco reported fourth-quarter revenue of $95.72 billion, above estimates of $94.86 billion, and adjusted earnings of $6.60 per share, versus estimates of $6.53. Earnings included a 15-cent-per-share benefit from tariff refunds.
1. Quarterly results
Costco beat quarterly revenue estimates as demand for essential goods drove shoppers to its warehouses. The company said fourth-quarter earnings benefited by 15 cents per diluted share from tariff refunds under the International Emergency Economic Powers Act.
2. Demand and shopping patterns
Costco has seen foot traffic rise as consumers trade down on essentials amid inflationary pressures. Shoppers are consolidating trips and buying more groceries and other essentials in bulk. Its gas stations have also attracted price-sensitive customers as the Iran war sends fuel prices soaring.
