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Costco tops revenue estimates on strong fresh food, jewelry demand By Reuters

by Mike Robinson

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© Reuters. FILE PHOTO. People wait in a line to get into the Costco Wholesale Store opening in Manchester on March 15, 2020. REUTERS/Phil Noble/File Photo GLOBAL BUSINESS WEEK AHEAD

(Reuters) – Membership-only retail chain Costco Wholesale Corp (NASDAQ:) beat market expectations for quarterly revenue on Thursday, helped by strong demand for fresh foods, snacks, household items and jewelry.

After the bell, shares in the Issaquah-based company rose 1%.

After the vaccine rollout, people have returned to outdoor and social activities. This has helped offset some of last year’s panic-induced slowdowns in groceries sales.

A reopening economy has also given people more confidence to return to shopping in physical stores, helping Costco which does not have the e-commerce strength of peers such as Walmart (NYSE:) Inc and Target Corp. (NYSE:)

Net income rose to $1.67 billion, or $3.76 per share, in the quarter ended Aug. 29, from $1.39 billion, or $3.13 per share, a year earlier.

Refinitiv IBES data showed that the comparable sales rose 9.4% in fourth quarter, while the increase was largely due to the absence of the effect of fuel and currency fluctuations.

The fourth quarter’s total revenue grew to $62.68 Billion from $53.38 Billion a year ago. According to IBES data by Refinitiv, analysts had an average revenue expectation of $61.30 trillion.

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