By Sarah Nassauer

Costco Wholesale Corp. reported strong quarterly sales Thursday as homebound Americans continue to spend more on food, homegoods and fitness products during the pandemic, especially the high-income shoppers that make up much of the warehouse chain's shopper base.

Comparable sales, those from stores or digital channels operating for at least 12 months, rose 17.1% during the quarter ended Nov. 22, excluding the impact of gasoline sales and currency movements. The retailer's e-commerce sales jumped 86% in the quarter.

Big-box retailers including Walmart Inc. and Target Corp. have generally fared well amid the coronavirus crisis, offering pandemic-weary shoppers one-stop shopping and in some cases, easy buy online, pick up in store parking lot options.

Costco's shoppers, who pay a membership fee to shop, are spending less on travel and eating out during the pandemic and more on food, appliances, homegoods and other items, said finance chief Richard Galanti on a call with analysts Thursday. "They seem to have redirected some of those dollars," he said.

Profits also rose during the quarter to $1.17 billion, up from $844 million in the same period last year. Costco raised wages during the quarter due to Covid-19, adding about $212 million in costs for the period, said Mr. Galanti. But the company boosted profits elsewhere, for example selling more food by reducing spoilage, he said.

Revenue grew to $43.2 billion in the quarter, from $37 billion a year earlier.

Write to Sarah Nassauer at sarah.nassauer@wsj.com

(END) Dow Jones Newswires

December 10, 2020 18:39 ET (23:39 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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