Costco tops sales expectations as cautious shoppers seek value

Costco is still winning over households that want savings they can see at the checkout. The warehouse chain said U.S. comparable sales rose 9.4% in the 12 weeks ended May 10, and 6.8% after stripping out gasoline and foreign exchange, beating the 6.13% estimate compiled by LSEG.

The numbers point to a consumer who has not stopped spending, but has become choosier. Costco’s net sales climbed 11.6% to $69.15 billion, while net income rose to $2.19 billion, or $4.93 per diluted share, from $1.90 billion, or $4.28 per share, a year earlier. Shoppers kept filling carts with food and other essentials even as fuel prices stayed above $4 a gallon and grocery bills remained elevated, conditions that reward chains built around bulk packs and predictable pricing.

Costco’s results also showed that the appeal of value is broadening rather than fading. Total company comparable sales rose 9.8%, or 6.6% adjusted, while digitally enabled sales increased 21.5%, or 20.8% adjusted. Paid memberships grew 4.1% in the quarter, underscoring the loyalty the company has retained even after its 2024 fee increase. Costco said it operated 931 warehouses worldwide, including 639 in the United States and Puerto Rico.

The quarter also benefited from gasoline traffic. Costco said the final five weeks of the period became its five biggest volume weeks ever for gas, and Ron Vachris said first-time members came to the company’s gas stations as prices rose and Middle East conflict pushed fuel higher. The company has also started submitting tariff refund claims and expects approved refunds to come back on a rolling basis over the next few months.

Costco’s strength fits a broader pattern in retail. Walmart said last week that U.S. comparable sales excluding fuel rose 4.1% in its first quarter ended May 1, a reminder that the biggest discounters are still capturing spend from households under pressure. The contrast with softer signals in other corners of retail suggests American consumers are not retreating entirely. They are retrenching, buying what feels essential, and moving quickly toward retailers that can prove the savings are real.