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Stock impact report

Costco shares good news as gas prices spike [Yahoo! Finance]

Costco Wholesale Corporation (COST) 
Last costco wholesale corporation earnings: 3/5 04:15 pm Check Earnings Report
Company Research Source: Yahoo! Finance
Costco has shared that it raises gas prices more slowly than it raises them. Basically, Costco takes a lower margin on gas sales while prices are rising, but makes that up as they fall. Former Costco CFO Richard Galanti defended that practice, discussing the warehouse club 's gas business during its second-quarter 2022 earnings call “As prices went up or went, even went down a little bit, they didn't go down as fast as perhaps they could have been, which gives us, in our view, an ability to make a little more and still be the most competitive,” he said. Now, with gas prices rising due to the war in Iran, Costco's current CFO, Gary Millerchip, shared some key news on the company's pricing strategy. He also shared how higher gas prices drive member behaviour. ALSO READ: Why Costco's gas prices won't rise as fast as traditional gas stations Costco's gas drives member visits Shopping at Costco's warehouses saves members money. Costco's prices were 21% lower than Walmart's Show less Read more
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