Costco reported adjusted earnings per share of $4.93 for fiscal third quarter ending May 10, surpassing analyst estimates and reflecting strong business momentum [1, 2, 3]. The company’s net sales rose 11.6% year-over-year to $69.15 billion, and total revenue reached $70.53 billion, beating Wall Street forecasts of $69.81 billion [3].
Membership renewal rates remained robust at 89.7%, slightly above market expectations. Costco’s membership base grew by 4.1% during the quarter, supported by a 37% increase in website and app traffic, indicating strong consumer engagement [1, 2, 3].
Fuel demand at Costco’s gas stations hit an all-time high amid rising global fuel prices and geopolitical tensions in the Middle East. The company operates more than 700 fuel stations worldwide and attracts customers by offering gas prices roughly 30 cents per gallon lower than nearby stations, even if it means longer wait times [1, 2, 4]. This surge in fuel sales contributed to a 5% increase in warehouse visits and boosted sales of food and daily essentials [4].
Costco CEO Ron Vachris said, “This past quarter’s merchandise sales were record-breaking, and the gas station business saw unprecedented demand,” noting many consumers were first-time users of Costco’s fuel stations [1, 4]. Financial Chief Gary Millerchip added that consumer habits remain stable, but shoppers continue to demand high quality, value, and freshness [1].
Costco is currently submitting tariff refund claims and expects to receive refunds within two to three months, which could further support its financials [1, 2].
The company reported its fiscal Q3 results on May 28 and will now focus on sustaining membership growth and capitalizing on strong fuel demand as it heads into the next quarter [3].
