Costco Logs Record Fuel Sales as Ex-Gas Sales Rise 6.8%
COST•Costco recorded successive all-time high gas station volumes across all three fiscal 4-week periods this quarter as Middle East tensions drove elevated fuel demand. CFO Gary Millerchip warned that rising resin-related input costs could trigger further non-food inflation even as US comparable sales excluding gasoline climbed 6.8%.
1. Record Fuel Volumes Drive Traffic
Costco achieved record-breaking fuel volumes in all three fiscal 4-week periods, with the last five weeks ranking among the company’s top five weeks ever. CEO Ron Vachris attributed this surge to Middle East tensions disrupting global fuel markets and prompting new and existing members to seek out Costco's lower gas prices.
2. Excluding Gas, US Comparable Sales Up 6.8%
US comparable warehouse sales excluding gasoline rose 6.8% as fuel-driven foot traffic boosted in-store purchases. This underlying sales growth highlights the positive spillover effect of gas station visits on Costco’s core retail business.
3. Non-Food Inflation Pressures Loom
CFO Gary Millerchip cautioned that higher resin-related input costs are likely to push non-food inflation higher in upcoming quarters. The company continues to monitor tariff refund timing and potential customer reimbursements while balancing broader inflation dynamics.
