Costco (NASDAQ:COST) shares surged more than 4% intra-day today after the company reported its first-quarter results, with EPS of $3.58 coming in better than the Street prediction of $3.40. The company's revenue for the quarter reached $57.8 billion, slightly surpassing the consensus estimate of $57.73 billion.

A key factor in Costco's success has been the increased customer traffic in its stores, where shoppers are seeking more affordable groceries and essential items.

Costco has effectively grown its sales and market share, largely due to its strategy of keeping prices low on basic essentials. Additionally, its robust membership base benefits from various incentives, such as a yearly 2% reward on qualified purchases made in its warehouses.

The company also observed a surge in sales in consumable categories like fresh food and sundries, along with strong performance from its private-label brand, Kirkland Signature. This growth is seen as a response to persistent inflation and rising borrowing costs, which have tightened household budgets.