A Costco wholesaler in Connecticut.
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Costco On Thursday, it beat Wall Street's quarterly profit and revenue expectations as it got a boost in part from higher membership fees.
Here's how the warehouse club fared for the fiscal first quarter, compared to what Wall Street expected, according to a survey of analysts by LSEG:
- Earnings per share: $4.04 versus $3.79 expected
- Revenue: $62.15 billion vs. $62.08 billion expected
In the three-month period ended Nov. 24, Costco's net income rose to $1.80 billion, or $4.04 per share, compared to $1.59 billion, or $3.58 per share, in the year-ago period. Revenue increased from $57.80 billion in the same period a year ago.
Costco has benefited from its reputation for selling bulk items at a better price as American households feel the cumulative effect of higher food and housing prices. The membership-based club also increased its annual membership fee for the first time in about seven years. The quarterly results are the first Costco has reported since the rate increase went into effect in September.
Costco's membership fee revenue was $1.17 billion, compared to the $1.16 billion Wall Street expected.
The company's comparable sales increased 5.2% year over year. Comparable sales in the US also increased by 5.2%.
E-commerce revenue rose 13% in the quarter compared to the same period a year ago.
As of Thursday's close, shares of Costco are up nearly 50% so far this year, surpassing the S&P 500's 27% gain over the same period. Shares closed Thursday at $988.39.
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