Shares of Costco Wholesale (COST) rose 7% after the company announced better-than-expected December sales figures.
The 7% increase was the biggest one-day gain in the stock since the COVID-19 pandemic hit in March 2020.
Costco said that, excluding the impact of changes in gasoline prices, its comparable sales in America rose 6.4% in December, topping the 5% average expectation among analysts who cover the company.
The strong December reading follows a 4.6% sales increase in November, which was the smallest gain since April 2020.
The Seattle-based warehouse club said it is seeing resilient demand among consumers as people continue to spend on food, as well as sporting goods and winter tires.
Despite the 7% one-day gain, Costco’s stock remains down 7% over the past 12 months and is currently trading at $482.87 U.S. per share.