Costco Continues to Grow Sales Amid Uncertain Consumer Environment

Costco, one of the leading wholesale retailers in the U.S., reported financial results in the first quarter that slightly exceeded expectations due to increasing demands from inflation-wary customers. Adjusted earnings per share came in at $4.04 compared to the consensus estimate of $3.81. Revenue of $62.15 billion also surpassed the anticipated $61.98 billion.

CFO Gary Millerchip stated during the earnings call that as long as there is "innovation, quality, and value in the products," "our members are willing to spend as inflation decreases."

Excluding fuel, same-store sales increased by 7.2% this quarter, driven by international sales and Canada following the U.S. However, pedestrian traffic rose by 5.1%, missing Wall Street's expected increase of 6.87%. Nevertheless, the average ticket size saw a 0.1% increase, outperforming Street's forecasted decline of 0.40%.