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An average shopper at Costco makes more than a typical Walmart (NYSE:WMT) and Target (NYSE:TGT) customer, and the warehouse club operator’s efforts to keep gas prices several cents below the national average has driven memberships.
The company’s revenue from memberships, which are priced between $60 and $120 per year, rose to $984 million in the quarter from $901 million a year earlier.
Its results come at a time when Walmart posted a fall in revenue due to the impact of decades-high inflation hitting consumer spending.
The membership-only retail chain’s total revenue rose to $52.60 billion in the third quarter, from $45.28 billion a year earlier, beating analysts’ estimates of $51.71 billion, according to IBES data from Refinitiv.
However, shares of the warehouse club operator fell about 2% in extended trading.
