Costco posts another quarter of sales growth amid an uncertain consumer environment

Costco (COST) slightly beat estimates in its fiscal first-quarter results as inflation-weary shoppers turn to the wholesaler.

Adjusted earnings per share were $4.04, compared with Bloomberg consensus estimates of $3.81. Revenue of $62.15 billion also beat expectations of $61.98 billion.

Same-store sales (excluding fuel) increased 7.2% in the quarter, driven by U.S. business, followed by international business and then Canada.

Foot traffic, up 5.1%, missed Wall Street’s 6.87% increase, but ticket size rose 0.1%, beating Wall Street’s 0.40% decline.

Shares are flat on Thursday following results. Costco shares have risen more than 50% since the beginning of the year, outpacing the S&P 500’s (^GSPC) 27% gain.

Here’s Costco’s report for its fiscal first quarter ended December 4, 2024, compared to Bloomberg consensus estimates.

Revenue: $62.15 billion versus $61.98 billion

Adjusted earnings per share: $4.04 versus $3.81

Total company comparable sales growth, excluding fuel: 7.2% vs. 6.26%

• U.S. same-store sales growth: 7.2% vs. 6.14%

• Same-store sales growth in Canada: 6.7% vs. 5.68%

• Other international sales growth: 7.1% vs. 7.08%

E-commerce growth: 13.2% vs. 14.1%

Income from membership fees: $1.17 billion vs. $1.17 billion

On September 1, Costco increased the price of its Gold Star membership by $5 to $65 and the price of its Executive membership by $10 to $130. This was the first full quarter since the price increase.

The company hasn’t increased its membership fees since 2017, and Costco said it delayed the increase until the team felt inflation had begun to subside and consumer purchasing power had returned.

Membership revenue rose 7.8% to $1.17 billion, compared to $1.08 billion last year.

In the first quarter, renewal rates reached 90.4%. In total, there are 138.8 million cardholders, an increase of 7.2% year over year.

The company doubled scanning membership cards at the door. CEO Ron Vachris said in the previous quarter that this would allow operators to know real-time foot traffic and encourage customers to renew their memberships.

“Membership growth remains healthy as consumers seek value and existing members continue to advance to the Executive membership level,” wrote a note to customers.

Costco operates 897 warehouses worldwide as of last quarter, up from 891 last quarter.

Its e-commerce business grew 13.2%, but fell short of estimates of 14.1%.

Online sales were boosted by gold and jewelry, as well as hardware, gift cards, home furniture, sporting goods and health and beauty aids.

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