Costco beats quarterly sales estimates on resilient demand for essentials

Sept 24 (Reuters) - Costco ‌Wholesale beat ​quarterly ​revenue estimates on Thursday, as resilient demand for essential goods from shoppers feeling squeezed ‌by high inflation drove foot traffic to ⁠its warehouses.

The company posted revenue of $95.72 billion for the fourth ‌quarter, above Wall Street ‌estimates of $94.86 billion, according to data compiled by LSEG.

Earnings for the quarter were lifted by a ​benefit of 15 cents per diluted share arising from tariff refunds under the International ⁠Emergency Economic Powers Act, Costco said.

The warehouse retailer, which keeps prices low ​by selling in bulk, has seen foot traffic rise as consumers trade down on ​essentials amid inflationary pressures.

That has ‌helped fuel growth in average basket size as shoppers consolidate their trips ⁠to the store, loading up on groceries and other essentials in bulk in a single visit rather than ⁠multiple runs for fewer items.

Costco gas stations — which usually sell ​below market value, according to TD Cowen analyst Oliver Chen — have also pulled in price-sensitive customers as the Iran ‌war sends fuel prices soaring.

The company posted adjusted earnings of $6.6 per share for ‌the quarter, above analysts' estimates of $6.53 per share, ⁠according to data compiled ‌by LSEG.

(Reporting by ​Angela Christy in Bengaluru and Nicholas P. Brown in New York; Editing by Jonathan ‌Ananda)

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