Costco Wholesale had a spectacular end to 2023, as holiday shoppers flocked to the retailer in droves. The company announced on Thursday that its revenue for December reached $26.2 billion, a remarkable increase of 9.9% compared to the previous year. This surge demonstrates a significant acceleration from November’s 5.1% growth.
The growth in same-store sales, which measures sales in stores open for more than a year, was even more impressive. In December, same-store sales climbed 8.5% compared to the same period the previous year. This is a notable improvement from November’s 3.5% increase. Excluding fluctuations in gasoline prices and foreign-exchange rates, same-store sales still rose by a commendable 8.1%.
Undoubtedly, holiday shopping played a crucial role in this surge. Foot traffic, an indicator of the number of people visiting stores, increased by 6.5% in the United States and 7.5% worldwide.
While food and sundries were the top-selling categories in December, gift cards and jewelry also enjoyed considerable popularity according to Josh Dahmen, Costco’s assistant vice president of financial planning and investor relations.
Online sales also experienced a significant boost. E-commerce same-store sales, which focus more on discretionary purchases, soared by an impressive 17.7% in December.
Following this positive news, the shares of Costco saw a small increase of 0.7% to reach $652.90. Over the past 12 months, the stock has gained an impressive 44%.