Consumer spending on fresh food, home furnishings and fuel offerings helped boost Wall Street estimates for quarterly revenue, boosted by strong consumer spending on its fresh food, home furnishings and fuel offerings.
The warehouse club operator's efforts to keep gas prices several cents below the national average has driven memberships, as an average shopper at Costco makes more than a typical Walmart and Target customer.
The company's revenue from memberships, which are priced between $60 and $120 per year, rose to $984 million in the quarter from $901 million a year ago.
The results came at a time when Walmart posted a decline in revenue due to the effects of decades-high inflation hitting consumer spending.
In the third quarter, the membership-only retail chain's total revenue rose to $52.60 billion from $45.28 billion a year earlier, beating analysts' estimates of $51.71 billion, according to IBES data from Refinitiv.
The shares of the warehouse club operator fell by about 2% in extended trading.