Costco’s Unique Items Boost Sales to $57.39 Billion in Third Fiscal Quarter
Costco is celebrating a successful year with sales reaching $57.39 billion in the third fiscal quarter of 2024, marking a 9.1% increase compared to the same period last year. The retail giant attributes this growth to a range of unique items that have been flying off the shelves.
CEO Ron Vachris highlighted some of the top-selling products during an earnings call with investors. These include artificial trees, Swedish dish towels, wagyu beef, gold bars, Kirkland Signature golf clubs, a $1,200 swing set, and inflatable outdoor toys. Vachris mentioned that the seven-foot artificial trees and wagyu beef have been particularly popular among customers.
In addition to these items, Costco has seen a surge in sales of gold and silver bullion, which were introduced in 2023. Analysts predict that about $200 million worth of gold bars and silver coins are sold each month through e-commerce, often getting snapped up within a few hours.
Vachris emphasized that the success of Costco’s sales is driven by offering unique items at great values that excite members. The continuous innovation of merchandise has continued to attract customers to the retail giant.
With net income up by 29.1% and e-commerce sales jumping by 20.7%, Costco remains a strong player in the market. The company also announced plans to open 12 new locations in the next three months, focusing on expansion in the US, Japan, and South Korea.
While membership fees play a crucial role in Costco’s profitability, there have been speculations about a potential fee increase. CFO Gary Millerchip addressed these claims, hinting that a price increase might be inevitable in the future.
Despite the positive results, Costco’s stock remained stable in premarket trade. However, the company’s valuation is on the rise, signaling a positive outlook for the future. With a focus on technology and member relationships, Costco is gearing up for continued success in the retail industry.