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Costco (NASDAQ:COST) shares were trading more than 2% lower after-hours despite the company posting strong Q3 results, driven by strong consumer spending on fresh food, home furnishings and fuel offerings amid the high inflation impacts.
Q3 EPS came in at $3.04, better than the Street estimate of $3.03. Revenue grew 16.3% year-over-year to $51.61 billion, compared to the Street estimate of $51.71 billion.
Given the company’s average shopper making more than a typical Walmart/Target customer, as well as its efforts to keep gas prices several cents below the national average, its membership revenue grew to $984 million from $901 million in the same quarter last year.
On its call, Costco said now is not the right time to raise member prices.
Shares of Costco are down 18% year-to-date.
