Costco Wholesale had an impressive end to 2023, thanks to the support of holiday shoppers. The company announced that its revenue in December rose to $26.2 billion, marking a 9.9% increase compared to the previous year. This growth rate is even higher than the 5.1% increase observed in November.
The same-store sales also experienced a faster growth rate, rising by 8.5% compared to the same period a year ago. In November, the growth rate was 3.5%. Excluding the impact of gasoline prices and foreign-exchange rates, same-store sales increased by 8.1%.
The surge in sales can largely be attributed to the holiday shopping season. Overall foot traffic in stores increased by 6.5% in the U.S. and 7.5% worldwide, indicating a significant increase in the number of people visiting Costco stores.
While food and sundries were the highest-selling categories in December, gift cards and jewelry also saw significant popularity. Josh Dahmen, Costco’s assistant vice president of financial planning and investor relations, mentioned this during a recent call.
In terms of e-commerce, same-store sales experienced a remarkable surge of 17.7% in December, with an emphasis on discretionary purchases.
Overall, Costco’s stock has performed well, showing a gain of 1.1% in premarket trading and a remarkable 44% increase over the past 12 months.