Wedoany.com Report-Dec.12, Costco Wholesale reported first-quarter results on Thursday that exceeded Wall Street expectations for both revenue and profit, driven by robust member demand for everyday essentials and select discretionary products ahead of the holiday shopping period.

For the quarter ended November 23, the warehouse club operator recorded revenue of $67.31 billion, surpassing the $67.14 billion consensus estimate compiled by LSEG. Adjusted earnings reached $4.50 per share, ahead of the anticipated $4.27 per share.

Comparable-store sales, excluding fuel, rose 6.4%, outperforming the 5.82% growth forecast by analysts. The performance reflects continued appeal of Costco's value-oriented model and its Kirkland Signature private-label range, which encourages members to consolidate spending at its warehouses.

"Costco's latest results are strong and could be a reflection of how consumers are shopping for the holiday season ... Shoppers are not ignoring budgets, but are looking to stretch their dollar further, and this is an area Costco helps with," said Greg Zakowicz, ecommerce and retail advisor at marketing platform Omnisend.

The company also benefited from rapid expansion of same-day delivery services. In the United States, Costco partners with Instacart, while international markets utilize Uber Eats and DoorDash, contributing to higher transaction frequency and basket sizes.

Analysts at Truist Securities noted: "We continue to believe that the company's heavy exposure to higher-income households and deep value model enable it to continue to gain market share."

Similar trends have appeared across the retail sector. Recent quarterly reports from Walmart, Dollar Tree, and Dollar General showed that consumers across income levels are increasingly choosing stores that combine low prices with convenient shopping options.

Costco shares traded slightly lower at $877.71 in after-hours trading following the release. The company maintained strength in membership renewals and new sign-ups underscores sustained loyalty among its customer base during a period when many households remain mindful of overall spending.