Costco says it saw 'record-breaking' gas volumes amid rising prices

Costco reported record-breaking gasoline sales volumes during the final five weeks of its fiscal third quarter, driven by rising fuel prices amid the ongoing conflict in the Middle East. The company experienced its top five volume weeks ever at its gas stations as customers sought more affordable fuel options. This surge contributed to an 11.6% increase in net sales, reaching $69.15 billion for the quarter, surpassing Wall Street expectations. CEO Ron Vachris highlighted that first-time members were attracted to Costco’s gas stations, which is expected to enhance customer loyalty and boost overall warehouse spending. The company also saw a 4.1% growth in paid memberships and a 37% increase in traffic on its website and app. Key sales categories during the quarter included pharmacy, home furnishings, and gold and jewelry, while digital sales surged nearly 21%. Costco’s strong financial performance included net income of $2.19 billion, or $4.93 per share, up from $1.9 billion, or $4.28 per share, in the previous year. Revenue rose to $70.53 billion from $63.2 billion year-over-year. The company’s ability to maintain competitive pricing amid macroeconomic uncertainty remains central to its strategy, with Vachris emphasizing a commitment to providing quality goods and services at the lowest possible prices. In addition to its operational results, Costco has initiated tariff refund claims following a Supreme Court decision that invalidated certain import levies imposed during the Trump administration. The company expects to receive these refunds on a rolling basis and plans to pass savings on to members, potentially through price reductions. This move aligns with Costco’s stated goal of being the first to lower prices and the last to raise them, reinforcing its value proposition in a challenging economic environment.