Costco says it saw ‘record-breaking’ gas volumes amid rising prices
Membership fee income rose 10.7% to $1.37 billion as paid executive memberships climbed 9.6%, supporting stronger-than-expected quarterly results.
- Costco CEO Ron Vachris reported that the final five weeks of the quarter ending May 10 were the company's top five fuel-volume weeks ever as customers sought cheaper gas amid the war in the Middle East.
- Vachris emphasized the company's commitment to providing quality goods at the lowest possible price, a strategy that drove a 4.1% increase in paid memberships and a 37% surge in digital engagement this quarter.
- Adjusted comparable sales rose 6.6% for the quarter with digital sales up nearly 21%, while earnings per share reached $4.93, beating Wall Street expectations.
- On Thursday, Vachris said Costco began submitting tariff refund claims following a Supreme Court decision, with the retailer planning to return these funds to members "in some form."
- Attracting first-time members to gas stations remains central to the strategy, as Vachris noted these customers typically spend more within the warehouse, driving expected loyalty gains.
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