Updated version 1 - Thanks to strong performance in demand for daily goods, Costco’s quarterly sales exceeded expectations.

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Reuters, September 24 - Costco Wholesale (COST.O) reported quarterly revenue on Thursday that exceeded market expectations, as demand for essential goods from consumers squeezed by high inflation remained strong, driving foot traffic at its warehouse-style stores.

According to data compiled by London Stock Exchange Group (LSEG), the company's fourth quarter revenue was $95.72 billion, higher than Wall Street's expectation of $94.86 billion.

Costco stated that this quarter's earnings benefited from tariff rebates received under the International Emergency Economic Powers Act, which increased diluted earnings per share by 15 cents.

The warehouse retailer, which maintains low prices through bulk sales, saw an increase in foot traffic as consumers shifted to purchasing lower-priced essentials due to inflationary pressures.

This has helped boost average basket size, as shoppers have reduced store visits, opting instead to make bulk purchases of groceries and other necessities, rather than making multiple trips to buy smaller amounts.

According to TD Cowen analyst Oliver Chen, Costco fuel stations typically sell fuel below market rates, and as oil prices have surged due to the Iran conflict, these gas stations have also attracted price-sensitive customers.

According to data compiled by London Stock Exchange Group (LSEG), the company's adjusted earnings per share this quarter was $6.60, higher than analysts' expectation of $6.53 per share.

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