Costco Q4 earnings preview: High gas prices expected to fuel Costco sales, foot traffic

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Costco's value proposition — especially when it comes to cheap gasoline — continues to bring in customers.

In late August, Costco exec David Sherwood said sales of food and miscellaneous goods such as candy grew by high single digits. The bakery and meat department were part of the "better-performing departments.", when e-commerce sales also came in 10% lower. Big ticket items in e-commerce sales were down 20% year over year but made up 55% of e-commerce sales.

Investors will be watching closely to see if Costco announces any plans to raise membership fees in the near future, as the company typically raises prices every five years and seven months on average. Last quarter, the company delayed hiking fees. During the Q3 earnings call, Galanti told UBS analyst Michael Lasser that the company feels "very good" that it could increase membership fees "without impacting, in any meaningful way, renewal rates or sign-ups or anything."

 

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