By Senad Karaahmetovic

Costco (NASDAQ:) reported whole comparable gross sales for Could that simply topped the typical analyst estimate.

The entire comparable gross sales got here in at +15.5% to crush the market estimate of +9.6%. The U.S. comparable gross sales excluding gasoline and currencies have been up 10.7%, once more higher than the estimate of +6.8%.

Telsey Advisory Group analyst Joseph Feldman is “impressed” by the Could gross sales report.

“We imagine Costco is executing effectively in a tricky working surroundings. The corporate ought to stay a share gainer, with its stable gross sales and excessive membership renewal charges (~116.6MM members). In FY23, Costco ought to proceed to generate double-digit EPS progress, pushed by an MSD comp, HSD membership charge earnings progress, wholesome digital progress, and efficient administration of prices,” Feldman stated in a consumer be aware.

Truist analyst Scot Ciccarelli stated “robust” outcomes present that the worth proposition is more and more vital.

“Its superior worth proposition continues to drive strong gross sales. In an more and more tough financial surroundings, we imagine Costco’s extraordinarily aggressive pricing will permit the corporate to take additional market share (whereas its higher-income client base helps insulate it in opposition to a broader financial slowdown). Additional, as we’ve got not too long ago written about, elevated fuel costs proceed to function a cloth driver of whole comps, with a optimistic 620bps influence throughout the month (in comparison with +500bps in April),” Ciccarelli instructed purchasers.