Costco Wholesale (NASDAQ:COST) posted solid first-quarter results, with rising revenue and better-than-expected earnings, as cost-conscious shoppers flocked to its warehouses for affordable groceries and discretionary goods.

For the quarter, total revenue increased nearly 7% year-over-year to $62.15 billion, slightly below analyst forecasts of $62.33 billion. Earnings per share came in at $4.04, surpassing the $3.78 consensus estimate and marking a significant improvement from $3.58 in the same quarter last year.

Costco’s gross margin expanded by 24 basis points to 11.3%, exceeding market expectations and signaling improved operational efficiency. The company also reported strong growth in its membership program, with paid memberships rising 7.5% and membership fee income increasing by 8%.