Costco’s (COST) fiscal third quarter earnings report showed consumers flocked to the wholesale giant for savings on gas.

In the company’s earnings call, Costco CEO Ron Vachris said the war in the Middle East had “a significant impact on product supply and gas prices,” resulting in “record-breaking” sales volumes during the last five weeks of the quarter. Costco entices customers to its store and gas pumps with lower prices.

“Our gas team performed exceptionally well to manage this unprecedented demand, which requires multiple daily gas deliveries to many locations,” Vachris said. “The high consumer price sensitivity, which fueled these record volumes, also drove many members to use our gas stations for the very first time in the third quarter.”

Customers who pump gas at Costco also tend to spend more inside the store.

In its fiscal third quarter, the wholesale retailer reported revenue increased nearly 12% to $70.53 billion, more than the $69.62 billion Wall Street analysts expected, per Bloomberg consensus data. Adjusted earnings per share of $4.93 were also higher than the $4.91 expected.

Same-store sales grew 9.8%, with 9.4% growth in the US, 10.7% in Canada, and 11.2% in other international markets — all higher than the Street predicted.

The results come as consumer sentiment hit record lows amid inflation concerns and as gas prices have remained well over $4 per gallon. Vachris said Costco’s tactic of offering “quality goods” and “services at the lowest possible price” is resonating with consumers.

Another metric that beat the Street’s estimates includes membership fees, which came in at $1.37 billion, slightly above the $1.36 billion expected.

Excluding gas sales, the company slightly missed expectations, posting overall same-store sales growth of 6.6%, just below 6.7% the Street had predicted. However, in the US, sales surpassed the Street’s expectations.

As the impact of higher fuel costs work their way through its offerings, the company said it is “monitoring the longer-term inflationary impacts of higher oil prices as well as the future impacts of tariffs.”

The stock was up slightly in after-hours trading following the results.

Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.

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