Costco says it saw 'record-breaking' gas volumes amid rising prices

Costco Wholesale on Thursday said it saw "record-breaking volumes" for gas in its fiscal third quarter amid rising fuel prices.

CEO Ron Vachris said the final five weeks of the quarter, which ended May 10, became Costco's top five volume weeks ever as customers searched for cheaper gas amid the war in the Middle East.

"Against the backdrop of ongoing macro uncertainty, our focus is providing quality goods and services at the lowest possible price," Vachris said on a call with analysts.

The company also said it saw first-time members coming to Costco for its gas stations during the quarter.

"We believe this will drive even greater loyalty with these members in the future, as members who use our gas stations typically spend more with us in the warehouse," he said.

The comments came as Costco reported an increase in net sales for its fiscal third quarter, beating Wall Street revenue expectations for the period.

The company reported net sales of $69.15 billion, up 11.6% from last year. It said adjusted comparable sales were up 6.6% for the quarter, with digital sales up nearly 21%.

Here's how Costco performed in its fiscal third quarter, compared with what Wall Street was expecting, based on a survey of analysts by LSEG: