Costco has said it has no plans to raise its membership price after it reported strong results for its fiscal third quarter.
For the three months to 8 May 2022, net sales were up 16.3% to $51.6bn, with like-for-like sales climbing 14.9% (+10.8% adjusted). Meanwhile, net profit grew 10.9% to $1.35bn, while pre-tax profit was up 10.7% to $1.83bn.
Costco said LFL sales in the US increased 16.6% (+10.7% adjusted), those in Canada rose by 15.2% (+12.8% adjusted), while other International markets registered a 5.7% uptick (+9.1% adjusted). Online sales were up 7.4% (+7.9% adjusted).
The wholesale giant said the results were boosted by strong consumer spending on fresh food and home furnishings. It added that it had not recorded significant trading down to its own label Kirkland Signature range, noting: “We’re seeing a little bit of shift in where people are spending their money… this year, it’s more sales in tickets, restaurants, travel, tires and gas”.
Costco reiterated that it has no plans to raise the price of its famous $1.50 hot dog and soda combo, despite high inflation, although it added that it was increasing prices in certain other areas of food.
NAM Implications:
- Right place, right time.
- Over and over.
- Net sales up 16.3%, like-for-like sales up 14.9%, and pre-tax profit up 10.7%.
- Says it all…
- Hopefully you achieved your fair share?
