Costco tops estimates as discount gas, bulk deals draw inflation-weary shoppers
COST•Costco reported fourth-quarter adjusted earnings of $6.60 per share, excluding a 15-cent tariff-refund benefit, and revenue of $95.72 billion. Same-store sales excluding gas and foreign exchange effects rose 6.7%, beating analysts’ 6.11% estimate.
1. Quarterly results
Costco’s fourth-quarter revenue rose about 11% from a year earlier to $95.72 billion, above analysts’ estimate of $94.86 billion. Adjusted earnings per share were $6.60, excluding a one-time 15-cent benefit from tariff refunds, compared with estimates of $6.53.
2. Sales and tariff refunds
Same-store sales excluding gas and foreign exchange effects increased 6.7%. CFO Gary Millerchip said Costco received $184 million in tariff refunds during the quarter; CEO Ron Vachris said the company reinvested the refunds through price reductions on some essentials, meat, beverages and non-food items.
3. Fuel and shopping trips
Vachris said Costco’s gasoline business had a “record year.” The company also saw average basket sizes increase as shoppers combined purchases of groceries and other essentials into fewer trips.
