Costco Wholesale reported record-breaking gasoline volumes in its fiscal third quarter, according to CEO Ron Vachris. The final five weeks of the quarter, ending May 10, were the company's top five volume weeks, driven by customers seeking cheaper gas amid the Middle East conflict.
Key Financial Results
- Net sales: $69.15 billion, up 11.6% year-over-year
- Adjusted comparable sales: up 6.6%
- Digital sales: up nearly 21%
- Net income: $2.19 billion ($4.93 per share), compared to $1.9 billion ($4.28 per share) a year earlier
- Revenue: $70.53 billion, exceeding analyst expectations of $69.81 billion
Membership and Sales Trends
Paid memberships grew 4.1% during the quarter. Traffic on Costco's website and app increased 37%. Top sales categories included pharmacy, home furnishings, gold, and jewelry. The company also noted first-time members joining specifically for gas, with Vachris stating that members who use Costco's gas stations typically spend more in the warehouse.
Tariff Refund Claims
Costco has begun submitting tariff refund claims following a Supreme Court decision invalidating certain Trump administration tariffs. Vachris said the company expects to receive refunds on approved claims on a rolling basis over the next few months and plans to return those funds to members in some form, adding:
"Our goal is to be the first to lower prices and the last to raise them."