Houston, June 5, 2026, 10:02 (CDT)
Costco Wholesale’s gas sales are standing out, with May up 14.5% according to a filing this week. Higher pump prices and more gallons sold boosted the latest quarter for the warehouse chain. Fuel has become a bigger draw for U.S. drivers looking for better deals at the pump.
Gas prices are back in focus as the summer driving season approaches. AAA said the national average for regular gas sat at $4.22 on Friday. The average in Houston was $3.777, a drop from the previous week but still up more than $1 over the same time last year.
Value stocks are getting a boost. Companies like Walmart, Dollar Tree and Gap report that shoppers are still spending but are sticking to basics and bargains rather than splurging on extras. “Consumers aren’t pulling back significantly, but they are clearly shifting behavior,” Michael Gunther, senior vice president at Consumer Edge, told Reuters. Reuters
Costco reported net sales of $24.01 billion for the four weeks ended May 31, up from $20.97 billion last year. Comparable sales jumped 12.5%. Excluding gas and forex impacts, comps rose 8.0%.
Gas boosted Costco’s results in the quarter ended May 10. The company’s filing showed gasoline volume was up about 10%, adding $662 million to net sales. Higher gasoline prices added another $1.37 billion, or 221 basis points. A basis point is one-hundredth of a percentage point.
Costco’s net sales for its fiscal third quarter climbed 11.6% to $69.15 billion. Total revenue with membership fees landed at $70.53 billion. Net income hit $2.19 billion, or $4.93 per share, up from $1.90 billion, or $4.28 per share, last year.
Costco execs linked the surge in sales to shoppers worried about prices. CEO Ron Vachris said the last five weeks of the quarter set a company record for fuel volume. CFO Gary Millerchip said Costco “widened our gaps in terms of price” as fuel costs weighed on members. Reuters
Access is for members only. Costco charges a base annual fee of $65, and its pump prices are usually 10 to 30 cents cheaper than other stations in the area, Inc. reported. As of quarter-end, the company counted 82.9 million paid members and 148.5 million cardholders, with a 92.2% renewal rate in the U.S. and Canada, according to its filing.
Sam’s Club, Walmart’s membership chain, is also using fuel deals to bring shoppers in, a strategy that’s getting attention as members hunt for savings. Reuters said this week that clubs like Costco and Sam’s Club are seeing more customers at their stores and gas pumps as shoppers look for value.
But cheaper fuel is a double-edged sword. If pump prices drop, shoppers might feel less pressure; if prices hold up, there’s less cash for other spending. Bryan Hayes, a stock strategist at Zacks, called the move “classic Costco,” but said gross margin could see “modest near-term pressure” as Costco keeps members loyal. Reuters
Costco stock jumped $16.40 to $988.75 early Friday. Walmart was up too, with investors sticking to retailers that benefit when consumers look for cheaper options.
