Costco Wholesale misses Reuters quarterly revenue estimates

(Reuters) – Costco Wholesale missed market expectations on fourth-quarter revenue on Thursday due to cautious spending by budget-conscious customers at its members-only stores as well as the impact of lower gas prices.

The company’s shares were marginally lower in extended volatile trading. They have gained about 37% so far this year.

While ultra-low prices for food and other kitchen staples are boosting demand for essentials, consumer spending on big categories like furniture, home and sporting goods has been choppy, weighing on sales at Costco (NASDAQ:) warehouses. .

The company’s same-store sales are also being hurt by lower gas prices, which are squeezing its margins. They rose 5.4% in the reported period, compared with a 6.6% increase in the third quarter.

Costco reported quarterly revenue of $79.70 billion, compared to the average analyst estimate of $79.97 billion, according to LSEG data.