Costco Wholesale Corp (NASDAQ:COST) stock fell 1.48% (As on December 12, 11:30:51 AM UTC-4, Source: Google Finance) though the company beat Wall Street estimates for first-quarter revenue and profit, as consumers snapped up affordable essentials and nice-to-have items at its stores ahead of the crucial holiday season. Retailers as well as dollar chain operators have been able to draw customers across income groups to their stores with the help of attractive offers and seasonal deals, even at a time when surging inflation and a weak labor market has turned shoppers cautious. Same-store sales, excluding gas, of Costco rose 6.4% for the quarter ended November 23, compared with analysts’ average estimate of a 5.82% increase as per data compiled by LSEG. Costco said it also gained from strong performance in its same-day delivery service offered in partnership with Instacart, opens new tab in the U.S. as well as UberEats and DoorDash, opens new tab internationally. Net income for the quarter was $2,001 million, compared to $1,798 million last year. U.S. comparable sales were up 5.9%, while Canada and other international operations posted adjusted comps of 9.0% and 6.8%, respectively.

COST in the first quarter of FY26 has reported the adjusted earnings per share of $4.50, beating the analysts’ estimates for the adjusted earnings per share of $4.27. The company had reported the adjusted revenue growth 8.3 percent to $67.31 billion in the first quarter of FY26, beating the analysts’ estimates for revenue of $67.14 billion. Net sales accounted for $65.98 billion of that total, while membership fees, Costco’s high-margin core, hit $1.33 billion, marking a 14% year-over-year increase. Operating income rose to $2.46 billion from $2.20 billion a year earlier, supported by strong private-label sales and lean inventory management. Costco ended the quarter operating 923 warehouses globally, including 633 in the U.S. and Puerto Rico. The warehouse club continues to expand its international footprint, with stores in over a dozen countries and an e-commerce presence across major markets such as the U.S., Canada, the U.K., and Australia. Digital sales were particularly strong, with a 20.5% increase, highlighting Costco’s successful digital transformation efforts. Traffic or shopping frequency increased 3.1% worldwide, and the average transaction or ticket was up 3.2% worldwide, both with and without the impacts of gas price deflation and FX.

Costco plans to continue its expansion with over 30 new warehouse openings annually and a focus on international markets. In fiscal year 2026, COST have five relocations planned, including three in the U.S. and one each in Canada and Taiwan.