Costco Beats Quarterly Estimates With $95.72 Billion Revenue

Costco Wholesale reported fourth-quarter financial results for the period ending August 30 that exceeded analyst expectations, with revenue rising to $95.72 billion, an 11% to 12% increase year-over-year. The company reported earnings per share between $6.57 and $6.75, surpassing the forecasted $6.54. Growth was driven by a 9.4% rise in same-store sales, a 7% increase in membership fees, and double-digit growth in digital channel sales.

CEO Ron Vachris described the period as a record year for the company's gasoline business. This performance occurred as inflation and rising fuel prices, linked to the Iran war, pushed price-sensitive consumers toward Costco's low-price bulk model and discounted fuel. CFO Gary Millerchip announced the company received $184 million in tariff refunds under the International Emergency Economic Powers Act, which contributed 15 cents per share to the bottom line. Costco reinvested these funds into price reductions for beverages, meat, and other essentials to increase member value.

To expand its reach, the retailer partnered with Uber Technologies to extend Uber Eats delivery services to 47 states. These results contrast with broader retail and consumer trends, including reports of consumer pressure from rivals like Walmart and the announcement by Starbucks Corporation that it will close approximately 250 North American stores due to poor financial performance.