Costco’s Q3 earnings report revealed that consumers turned to the wholesale giant to save on gas.
Net sales for the quarter increased 11.6 percent, to $69.15 billion, from $61.96 billion last year. Net sales for the first 36 weeks increased 9.6 percent, to $203.37 billion, from $185.48 billion last year.
Same-store sales grew 9.8%, with 9.4% growth in the US, 10.7% in Canada, and 11.2% in other international markets.
In the company’s earnings call, Costco CEO Ron Vachris said, “Our gas team performed exceptionally well to manage this unprecedented demand, which requires multiple daily gas deliveries to many locations. The high consumer price sensitivity, which fueled these record volumes, also drove many members to use our gas stations for the very first time in the third quarter.”
“We believe this will drive even greater loyalty with these members in the future, as members who use our gas stations typically spend more with us in the warehouse,” he said.
Costco stock fell 0.9% following the announcement.
By CEO NA Editorial Staff
