Investing.com -- Shares in Costco (NASDAQ:COST) dipped in premarket U.S. trading on Friday despite the members-only warehouse retailer reporting better-than-expected fiscal third-quarter results.
Comparable sales, including gas and currency changes, increased by 6.6% in the 12 weeks ended on May 12, beating analyst expectations of 5.9%, in a sign that cash-strapped consumers were turning to bulk-buying of fresh food and baked goods during a time of broader economic uncertainty. Excluding gas and foreign exchange effects, same-store sales rose 6.5%.
Although shoppers have widely been reining in expenditures on pricier non-essential products, Chief Financial Officer Gary Millerchip told analysts in a post-earnings call that Costco was boosted by spending on "toys, tires, lawn and garden, and health and beauty aids."
"As inflation has leveled off, our members are returning to purchasing more discretionary items," Millerchip said.
Sales in the U.S. and Canada were up 6.2% and 7.7% respectively. Membership fees rose to $1.12 billion, up from $1.04 billion in the same period last year.
Earnings per diluted share came in at $3.78 on revenue of $58.52 billion, topping forecasts of $3.71 and $58.13 billion.