Costco shares fall after same-store sales tumble with gas prices

Key points to remember

  • Shares of Costco fell more than 2% on Friday after comparable store sales fell in June as gasoline prices fell.
  • The retailer said average gasoline prices around the world were down 24% per gallon year-over-year.
  • The company said that without the changes in gas prices and exchange rates, comparable sales would have increased.

Shares of Costco Wholesale Corporation (COST) fell after same-store sales at the largest U.S. warehouse retailer fell due to lower gasoline prices.

Costco said same-store sales fell 1.4% last month, 2.5% in the United States and 0.6% in Canada. They increased by 4.5% on the other international markets.

The company said gas price deflation had a negative impact of 4% on comparable sales. He added that the average global selling price was down 24% per gallon compared to June 2022.

Excluding the impacts of changes in gas prices and currency exchange rates, Costco said same-store sales increased 3%.

Overall revenue was $22.86 billion, up 0.4% from a year ago but less than May’s 1.2% increase. E-commerce sales fell 0.7%. However, this was well below the 7.6% drop the previous month. The average amount spent per visit decreased by 5.4%.

Despite Friday’s losses, Costco shares remained in positive territory for the year and are up more than 15% year-to-date.

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