(Reuters) -Costco Wholesale topped Wall Street’s estimates for quarterly sales on Tuesday as consumers flocked to its stores for cheaper groceries and other necessities, helping offset feeble demand for discretionary items.
Costco has managed to drive robust sales growth owing to its ultra-low prices for essential goods and a loyal member base, helping the retailer grow its market share despite a tough macroeconomic environment.
Although demand for discretionary items like sporting goods and houseware has been under pressure, strong sales gains on the consumables side – including for fresh foods, candy and bakery – have helped the firm.
Total revenue at the company rose to $78.94 billion in the fourth fiscal quarter, from $72.09 billion a year earlier. Analysts on average expected revenue of about $77.90 billion, according to LSEG IBES data.
Net income attributable to Costco increased to $2.16 billion, or $4.86 per share, in the quarter ended Sept. 3, from $1.87 billion, or $4.20 per share, a year earlier.
(Reporting by Deborah Sophia in Bengaluru; Editing by Pooja Desai)
