The big-box club chain said it’s been seeing accelerating prices across a range of products, including shipping containers, aluminum foil and a 20% spike in meat prices over the past month.
“Inflationary factors abound,” CFO Richard Galanti said on the company’s fiscal third-quarter earnings call Thursday.
“These include higher labor costs, higher freight costs, higher transportation demand, along with the container shortage and port delays … increased demand in various product categories some shortages, various shortages of everything from chips to oils and chemical supplies by facilities hit by the Gulf freeze and storms and, in some cases, higher commodity prices,” he added.
Costco reported a profit of $2.75 a share for the period, well above Wall Street estimates. It also saw revenues of $45.3 billion that also beat the Street, which had been looking for $43.6 billion.
Beneath those numbers, though, was a story of how higher prices across the board impacted the chain.
On the plus side, there was a boost from gas inflation as prices at the pump have soared about 30% nationally this year. In other cases, it wasn’t so simple.
Like other companies, Costco wrestled with passing costs onto customers. The firm expects there could be some margin pressures, though the degree remains to be seen and there haven’t been any significant impacts so far.