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(Reuters) – Costco Wholesale on Thursday reported quarterly sales that beat market expectations as more customers turned to its stores for cheaper groceries and essentials, offsetting weak demand for discretionary items.
Shares of the membership retail chain have risen 38% since the beginning of the year, but were up 1.7% in after-hours trading.
Costco’s strategy to maintain low prices on basic necessities and gas is thanks to a dedicated member base that benefits from incentives such as free sample testing and 2% annual rebates on eligible purchases in its warehouses. has expanded its sales and market share.
The one-stop retailer has seen growth in consumables categories such as fresh produce and miscellaneous goods, as well as its private label brand Kirkland Signature, even as non-food categories such as sporting goods and office supplies have been weighed down by persistent inflation. sales are rapidly increasing.
The company’s first-quarter total revenue rose to $57.8 billion, compared to analysts’ expectations of $57.72 billion, according to LSEG data.
Net income attributable to Costco was $1.59 billion, or $3.58 per share, for the quarter ended Nov. 26, up from $1.36 billion, or $3.07 per share, in the year-ago period.
(Reporting by Granth Vanaik in Bangalore; Editing by Maju Samuel)
Copyright 2023 Thomson Reuters.
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