Costco beats quarterly revenue estimates on strong grocery demand

By Thomson Reuters May 30, 2024 | 3:25 PM

(Reuters) -Costco Wholesale beat third-quarter revenue expectations on Thursday, as cash-strapped consumers flocked to its warehouses to grab low-priced groceries and discretionary items.

The membership-only retailer saw resilient demand for its groceries and bakery items as consumers grappling with still-high cost of living preferred cooking more meals at home.

With consumers trading down to shop for low-priced goods across product categories, the company also saw steady demand for its low-priced discretionary items.

The company reported total revenue of $58.52 billion in the quarter ended May 12, compared with analysts’ average estimate of $58.07 billion, according to LSEG data.

Costco also posted a profit of $3.78 per share, above estimates of $3.70.

The company’s total comparable sales rose 6.5% on an adjusted basis in the quarter, compared to a 3.5% rise last year.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Maju Samuel)