Costco Wholesale Corp COST.O reported quarterly revenue on Thursday that missed analysts’ estimates as consumers reduced spending on discretionary items such as jewelry and groceries. electronics Against a backdrop of decades-high inflation.
Retailers Target CorpTGT.N and Dollar Tree IncDLTR.O also said in November that surging inflation and changes in consumer spending were reducing demand for discretionary goods such as toys and electronics.
Costco’s total revenue for the first quarter was $54.44 billion, compared with estimates of $54.64 billion, according to Refinitiv IBES data.
However, net income attributable to the membership-only retail chain rose to $1.36 billion, or $3.07 per share, in the quarter ended Nov. 20, from $1.32 billion, or $2.98 per share, a year earlier.
Shares of the company declined about 1% in extended trading.
(Reporting by Granth Vanaik in Bengaluru; Editing by Shaunak Dasgupta)