Although Costco's earnings beat Wall Street expectations, the retailer's management team is cautious about the economy and consumer spending in the months to come.
Executive VP and CFO Richard Galanti quoted the chain's CEO Jim Sinegal, saying the company is "still operating in a healthy state of paranoia because the economy is still a little scary".
Galanti noted electronics, including DVDs and CDs, and books as an area of weakness for Costco, as digital and online competition increases. However, Galanti pointed out that housewares, sporting goods and jewelry are selling well.
Costco's online sales are also trending upward, up 9 percent for the quarter and 6 percent for the fiscal year.