Consumer

Costco Profit Beats Estimates on Healthy Consumer Spending

  • Customer traffic increased in the most recent quarter
  • Company is benefiting from its affluent shopper base

Shoppers outside a Costco store in Bayonne, New Jersey.

Photographer: Angus Mordant/Bloomberg
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Costco Wholesale Corp. posted quarterly profit that beat expectations, showing the big-box retailer remains unfazed by tighter consumer spending.

The results reinforce Costco’s unique position among retailers as its affluent customer base, which is willing to pay an annual membership, helps to insulate the company. An ever-changing offering of jumbo-sized products, which are seen as a good value, is drawing consumers, while the Kirkland brand, used on everything from batteries to tequila, is also popular.