Costco June sales rise 10.6% as gas prices boost comparable growth

Costco Wholesale Corp. reported June sales of $29.24 billion, a 10.6% increase from a year earlier, boosted by higher gasoline prices.

The company's comparable-store sales rose 8.8% for the five weeks ended July 5, including a 10.6% gain in the U.S. and a 3.7% increase in Canada, Costco said in a statement. Digitally-enabled comparable sales surged 20.9% during the period.

Gasoline prices had a roughly 2.5 percentage point positive impact on overall comparable sales, with average worldwide selling prices per gallon up 22% from a year earlier, according to the company. Excluding the effects of gasoline price changes and foreign exchange, total comparable sales rose 7%, with U.S. comparable sales up 7.6%.

Costco's board declared a quarterly cash dividend of $1.47 per share, payable Aug. 7 to shareholders of record as of July 24. The company operates 933 warehouses globally, including 641 in the U.S. and Puerto Rico.

Shares fell 1.5% to $939.34 in after-hours trading Wednesday after closing at $953.13, up 11% for the year. The stock's decline despite the sales growth suggests investors had priced in even stronger results or are focused on margin pressure from elevated fuel costs.

For the first 44 weeks of the fiscal year, Costco reported net sales of $250.43 billion, up 10.1% from $227.46 billion a year earlier. The company's next quarterly earnings report, which will include full profit and margin data, is expected in the coming weeks and will provide a clearer picture of how inflation and input costs are affecting the bottom line.

This article is for informational purposes only and does not constitute investment advice.