Costco Q3 earnings beat all key metrics, after shares closed at an all-time high

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Costco (COST) posted another bulk-sized quarter as consumers look for wallet-friendly prices on everyday essentials. On Thursday afternoon, the company reported net sales of $58.52 billion, compared to estimates of $57.98 billion. Its adjusted earnings of $3.78 also beat estimates of of $3.70. Same-store sales, excluding fuel, jumped 6.5%, led by its growing international business (up 8.5%), Canada (up 7.4%), and the US (up 6%). In the quarter, the wholesale retailer saw foot traffic go up year over year, beating the likes of Sam's Club (WMT) and BJ's Wholesale Club (BJ), according to Placer.ai. E-commerce is also a bright spot, surpassing expectations of an 11.5% year-over-year bump with a 20.7% increase. In the previous quarterly report, digital sales grew more than 18% year over year, which was powered by demand for gold bars, silver, and appliances, former Costco CFO Richard Galanti said then on the earnings call. Membership fees, a key revenue stream, came in line with estimates at $1.12 billion, a 7.6% increase compared to last year. A Costco Gold Star membership costs $60 per year, while an Executive Membership goes for $120. Some on the Street predicted last year that Costco would raise fees this summer. Shares of Costco are up 25% year to date, outpacing the S&P 500's (^GSPC) 10% gain, and closed at a record high prior to reporting its fiscal Q3 results on Thursday. "We continue to believe a premium valuation is warranted, given Costco's superior global unit growth prospects, leading competitive position, and track record of driving share gains," Oppenheimer analyst Rupesh Parikh wrote in a note to clients prior to the report, adding that "management can unlock even more shareholder value over time through driving alternative revenue streams." JPMorgan analyst Christopher Horvers wrote that the company's stock continues to benefit from a higher income audience, along with a long history of consistent market share gain. Wall Street is eager to hear how non-food categories like the jewelry department (including gold bars) performed, along with traditional strength from fresh food, led by meat and produce. This comes as consumers are looking for value in groceries. In April, grocery prices jumped 1.1% compared to last year but dropped 0.2% compared to March, per the US Bureau of Labor Statistics. A family moves through the checkout lane with its groceries at a Costco Wholesale store on Nov. 13, 2023, in Colchester, Vermont. (Robert Nickelsberg/Getty Images) (Robert Nickelsberg via Getty Images) The earnings rundown: Here's what Costco posted in its fiscal third quarter earnings, compared to Wall Street estimates: Net sales: $58.52 billion versus $57.98 billion Adjusted EPS: $3.78 versus $3.70 Story continues Total company comparable sales, excluding fuel: 6.5%, compared to 5.93% US same-store sales growth: 6% versus 5.51% Canada same-store sales growth: 7.4% versus 6.96% Other international: 8.5% versus 7.46% E-commerce growth: 20.7% versus 11.5% Membership fees: $1.12 billion versus $1.12 billion — Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com. Click here for all of the latest retail stock news and events to better inform your investing strategy