Strong U.S. comparable store sales coupled with higher membership fees were key factors in driving revenue in Costco’s fiscal year third quarter.
Sales for the period ended May 7 grew 8% to $28.22 billion, up from $26.15 billion in the same quarter the previous fiscal year. Company-wide comparable store sales were up 5%, with those in the U.S. up 6%.
Net income for the quarter was $700 million, or $1.59 per diluted share, up from net income of $545 million, or $1.24 per diluted share in the third quarter of fiscal year 2016. Quarterly membership fees were up $26 million.
Richard Galanti, Costco’s chief financial officer, pointed to several categories including housewares, domestic and apparel showing solid growth in the quarter.
Net sales for the first 36 weeks increased 6%, to $84.82 billion as compared to net sales of $80.34 billion in the same time frame the prior year. Comparable store sales company-wide and in the U.S. increased 5%. Net income for the first 36 weeks was $1.8 billion, or $4.01 per diluted share, versus net income of $1.6 billion, or $3.56 per diluted share, in the first three quarters of fiscal year 2016.