Costco’s profits rose significantly on the back of sales of gold bars and silver.

Costco (COST) is profitable again on the back of gold bars and warehouse-friendly commodity prices.

Wholesale Club’s adjusted earnings per share (EPS) was $3.92, well above expectations of $3.62. Revenue rose 5.7% year over year to $58.44 billion, according to Bloomberg data, but was slightly below expectations of $59.04 billion.

Excluding gasoline costs and foreign exchange, same-store sales increased by 5.8%.

In the United States, same-store sales growth exceeded expectations at 4.8%. Canada saw same-store sales beat his expectations with a 9% increase, while international stores posted a better-than-expected 8.2% increase.

Costco Chief Financial Officer Richard Galanti told analysts on a conference call late Thursday that digital sales are down from a year ago, driven by demand for gold bars, silver and electronics. He said this was an increase of more than 18%.

Membership fees, the company’s main source of revenue, totaled $1.11 billion, up from $1.03 billion in the same period last year. This was also a significant increase from $1.08 billion in the first quarter.

Costco’s Gold Star membership costs $60 per year, and its Executive membership costs $120. Some people on the street predicted last year that Costco would raise prices this summer.

Costco stock fell 4.6% in premarket trading on Friday, as Wall Street took the view that the stock is fairly valued at current levels.

“While the quarter was strong, it is difficult to see the next leg as a catalyst for further upside at current valuations. COST remains very well positioned to gain share, but at its high multiple ( “We remain neutral on the stock, given its crowded position (29.0x 2024E EV/EBITDA) and crowded position,” Citi analyst Paul LeJuet said in a note to clients. We believe that there is a good balance between the two.”

Costco stock is still up about 55% over the past year, easily outpacing the S&P 500 index’s (^GSPC) gain of 29%.

Revenue summary:

Here’s what Costco reported in its fiscal second quarter and what Wall Street expected, according to Bloomberg data.

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• Net sales: $58.44 billion vs. $59.04 billion

• Adjusted EPS: $3.92 vs. $3.62 expected

• Same store sales growth: 5.8% vs. expected 4.65%

  • US same-store sales growth: 4.8% vs. 4.09% expected

  • Canadian same-store sales growth: 9% vs. 6.31% expected

  • Other overseas: 8.2% vs. 6.17% expected

What else caught our attention?

• Costco’s U.S. customer count increased 4.3% in the quarter.

• Costco opened its sixth store in China, Shenzhen, in the same quarter. One more store is scheduled to open in the country this year as part of his plan to open 30 new stores around the world.

• Costco is entering the sushi business. Mr. Galanti said at the financial results conference: “We recently opened our first fully-operated sushi restaurant in Issaquah, Washington, across the street from our headquarters. We plan to open two more locations in the near future. The sushi program has proven to be a successful category in both quality and price, and we look forward to seeing it in many more areas. future. “

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Brooke DiPalma is a senior reporter at Yahoo Finance. Follow her on Twitter @brooke di palma Or email bdipalma@yahoofinance.com.

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