Costco exceeded Wall Street’s expectations for the fiscal first quarter, driven by a 13% rise in e-commerce sales and increased in-store traffic. The company reported earnings of $4.04 per share, beating the expected $3.79, and revenue of $62.15 billion, surpassing the $62.08 billion estimate. Net income rose to $1.80 billion, up from $1.59 billion in the same period last year.
Strong sales in jewelry, luggage, and home goods contributed to the growth, while Costco saw a shift in consumer behavior, with shoppers opting for both premium and lower-cost items, particularly in fresh categories like meat and produce. Traffic rose globally by 5.1%, and membership revenue climbed 8%, benefiting from the recent membership fee increase.
Costco also saw impressive growth in its Kirkland Signature private label brand, while e-commerce success continued with nearly 1 million deliveries. The company plans to open 29 new locations this fiscal year, including 10 outside the U.S. Costco’s shares have surged nearly 50% this year, outperforming the S&P 500’s 27% gain.
