Lede

Costco's shares dropped in after-hours trading after reporting a monthly same-store sales drop for the first time in almost three years.

Summary

• Overall same-store sales fell 1.1% last month.
• This is the first time sales have fallen since April 2020.
• US same-store sales fell 1.5% in March, with a 2.4% decrease in Canada, while elsewhere internationally, those sales rose 2%.
• E-commerce comparable sales slid 12.7%.
• Falling gas prices and foreign exchange weighed on results, according to Josh Dahmen, Costco's assistant VP of finance and investor relations.
• Home furnishings and toys were among the underperformers in March.
• However, health and beauty products and apparel fared better.
• Shares fell 2% after hours on Wednesday.
• Executives have expressed confidence that they can keep charging customers at elevated prices since groceries are essential goods.
• Central bank policymakers, however, have tried to find ways to tame companies' pricing power.
• Costco shares have fallen 13.6% over the past 12 months.