Membership-only retail chain Costco Wholesale Corp beat Wall Street estimates for quarterly revenue on Thursday, as consumers returning to its stores bought more fresh foods, snacks, jewelry and home furnishings.
As vaccination rates picked up and pandemic-related curbs eased, more consumers stepped back into brick-and-mortar stores to buy supplies boosting sales at Costco, which relies heavily on customers' treasure-hunt shopping experience at its cavernous warehouses.
Costco, which does not boast the e-commerce strength that retailers like Walmart Inc and Target Corp have, also benefited from the resumption of social events and travel that boosted demand for high-margin items like jewelry and apparel.
Total revenue rose to $50.36 billion in the first quarter ended Nov. 21, from $43.21 billion a year earlier. Analysts on average had expected revenue of $49.60 billion, according to IBES data from Refinitiv.
Comparable sales, excluding the impact of fuel and currency fluctuations, jumped 9.8% in the quarter, compared with estimates of an 8.74% rise.
Net income attributable to Costco rose to $1.32 billion, or $2.98 per share, from $1.17 billion, or $2.62 per share, a year earlier. (Reporting by Deborah Sophia in Bengaluru; Editing by Shailesh Kuber)
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