Costco (COST) reported fiscal 2023 third-quarter earnings results Thursday after market close that missed analysts' expectations.
Last quarter, same-stores growth slowed compared to previous quarters with people spending less, particularly on big-ticket items, amid higher grocery prices. Total sales for the quarter increased 1.9% compared to last year, to $52.60 billion.
Here's what Costco reported, compared to Wall Street estimates, based on Bloomberg consensus data:
Revenue: $53.65 billion versus $54.66 billion expected
Adjusted earnings per share: $2.93 versus $3.30 expected
Same-store sales, excluding gas: up 1.8% versus 3.48% expected
United States: down 0.1%
Canada: down 1.0%
Other international: up 4.1%
Its e-commerce sales also came in lower, down 10.0%. Membership fees, a key revenue stream for the wholesale retailer, brought in $1.04 billion, a tick lower than Wall Street estimates of $1.05 billion.
The company didn't indicate it would raise membership fees in the imminent future. However, in the note, UBS Analyst Michael Lasser, who has a Buy rating on shares, said now is the right time to raise fees, despite consumer wallets' being stretched. "This will be a key focus this quarter. We think there's a good chance that COST will bump its Gold Star Membership fee by $5 and its Executive Membership fee by $10 either this quarter or next."
Costco last raised membership prices — a Costco Gold Star membership costs $60 per year and an Executive Membership goes for $120 — in June 2017. The company typically raises prices every 5 years and seven months on average, which suggests the next hike is imminent.
As of Wednesday, there are 27 Buys, 14 Holds and 0 Sells on shares of Costco.
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Brooke DiPalma is a reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
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