Costco Sees 12% Revenue Rise and Record Gas Sales as Fuel Costs Surge
COST•Costco’s fiscal third quarter revenue rose 12% to $70.53 billion with adjusted EPS of $4.93, surpassing analysts’ expectations. Record-breaking gas sales volumes during the quarter’s final five weeks, driven by over $4 per gallon fuel prices linked to the US-Iran war, bolstered in-store spending and membership fee growth.
1. Strong Q3 Earnings and Same-Store Sales Growth
Costco reported fiscal third quarter revenue of $70.53 billion, a 12% increase over last year, with adjusted earnings per share at $4.93, topping consensus estimates. Same-store sales grew 9.8%, led by 9.4% growth in the US, 10.7% in Canada and 11.2% in other international markets.
2. Record Gas Sales Driven by Fuel Price Spike and War Impact
In the quarter’s last five weeks, Costco achieved record-breaking gas sales volumes as consumer price sensitivity spiked with gasoline over $4 per gallon. CEO Ron Vachris noted that multiple daily fuel deliveries were needed at many locations to meet unprecedented demand.
3. Monitoring Long-Term Inflationary and Tariff Impacts
Costco collected $1.37 billion in membership fees, slightly above expectations, and noted that excluding gas sales, same-store sales growth was 6.6%. The company is closely monitoring the longer-term impact of higher oil prices and potential future tariff effects on product costs.
