Costco Wholesale reported third-quarter profit just above analysts' estimates, as its low prices for food and gasoline appealed to shoppers.
The largest U.S. warehouse club chain typically offers everyday items like eggs below supermarket prices, hoping customers will stock up on other goods as well, and usually prices gasoline lower than nearby competing stations to attract members.
Members pay up to $110 per year to shop at Costco's big stores and website, which sell items ranging from food to furniture. The fee revenue pads the bottom line, allowing the company to offer low prices and take in thin profit margins on products it sells.
Shares of Costco closed at $112.95 on the Nasdaq on Wednesday. (Click here to get the latest after-hours quote.)