Costco (NASDAQ:COST) posted Q4 earnings per share (EPS) of $4.86, surpassing the Street forecast of $4.78. The quarterly revenue stood at $78.94 billion, exceeding the Street estimate of $77.72 billion.

The beat was driven by a surge in consumer visits to its stores seeking affordable groceries and essential items. This helped offset the weak demand for high-priced discretionary products.

The members-only retailer has achieved substantial sales growth by offering highly competitive prices on essential products and maintaining a loyal customer base. These factors have contributed to its market share growth despite challenging economic conditions.

While demand for non-essential items like sports equipment and home goods has been sluggish, strong sales in consumables such as fresh foods and candy have bolstered Costco's performance.