Costco Wholesale (Nasdaq: COST) on Thursday announced its financial statements for the third quarter of fiscal 2022 ended May 8, 2022. The company posted net revenue of $51.61 billion, a jump from $44.38 billion of the third quarter of 2021.
Adding membership fee revenue of US$984 million, the total revenue figure was US$52.60 billion, beating the estimate of 51.5 billions of US dollars.
Most of the comparable sales growth came from the US market at 16.6%, an increase from 10.7% last year, while the non-North American market declined to 5.7% compared to 9.1% last year. Total comparable sales increased 14.9% in the quarter compared to 10.8% last year.
Lower, the company reported net income of $1.35 billion, also up from $1.22 billion last year. This translates to diluted earnings of $3.04 per share, also beating the estimate of $3.02 per share.
The performance for the quarter comes in the context of the highest inflation rates. But senior vice president of finance and investor relations Bob Nelson, speaking on the earnings call, said the company plans to mitigate potential price increases.
“I think we always want to be the best value on the market. And to the extent that we continue to show that, I think it’s easier for us to pass on higher prices, or higher transportation costs, or raw material costs, assuming we show that value in the market,” Nelson said.
Replacing CFO Richard Galanti, Nelson also reiterated on the call that the price of his hot dog meal will remain at US$1.50. This is in response to last week’s viral tweet which incorrectly claimed that the price would rise by US$1.00 due to inflation, causing the company’s shares to fall 13%.
“I want to address some incorrect information circulating on social media and a few other outlets claiming that we have raised the price of our $1.50 hot dog and soda combinations sold in our food courts. Let me say that the price when we introduced the hot dog/soda combo in the mid 80’s was $1.50. The price today is $1.50 and we have no plans to increase the price at this time,” Nelson added.
The wholesale giant ended the quarter with $11.19 billion in cash and cash equivalents, bringing the balance of current assets to $33.00 billion. Meanwhile, current liabilities ended at US$31.85 billion.
Costco last traded at US$464.99 on the Nasdaq.
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