Costco beats revenue expectations with strong demand for low-priced items

From Investing.com: 2024-05-30 18:46:34

Costco Wholesale beat third-quarter revenue expectations as consumers gravitated towards low-priced items. Sales of fresh foods and bakery products surged, with an increase in discretionary purchases noted. Walmart exceeded quarterly estimates, while Target struggled with subdued consumer spending. Costco’s total revenue was $58.52 billion, and profit was $3.78 per share, surpassing expectations.

Analyst Scot Ciccarelli praised Costco for its consistency in a volatile retail landscape. Visits to Costco were up 8.9% year-over-year in the first quarter, compared to Walmart’s 3.9% and Target’s 3.5%. Costco’s total comparable sales rose by 6.5% on an adjusted basis, with ecommerce sales up 20.7%. Despite strong performance, shares fell 1.7% in after-market trading amidst wider market declines.



Read more at Investing.com: Costco tops revenue estimates on rebound in demand for low-priced discretionary items By Reuters