Costco beats estimates with $95.72B in quarterly sales

Costco Wholesale beat quarterly revenue and profit estimates on September 24, driven by strong foot traffic from consumers seeking lower prices on essential items amid persistent inflation.

The warehouse retailer reported fourth-quarter revenue of $95.72 billion, exceeding Wall Street projections of $94.86 billion, according to data compiled by LSEG. Adjusted earnings reached $6.60 per share, surpassing analyst forecasts of $6.53 per share.

Quarterly earnings included a 15-cent benefit per diluted share from tariff refunds under the International Emergency Economic Powers Act. Customers consolidated trips by purchasing groceries and household essentials in bulk, increasing average basket sizes.

Costco also drew price-sensitive drivers to its gas stations, which typically price fuel below market averages, according to TD Cowen analyst Oliver Chen, as conflict involving Iran pushed gasoline prices higher.