Costco Beats Estimates On Strong Online & Membership Growth

Apart from store expansion, the retailer's strong revenue growth can be attributed to a healthy rise in new membership signups. Given the strength of its business model, Costco has been able to attract new members, which should continue in the future given that it is expanding steadily in key new markets. Also, Costco's e-commerce sales increased at a robust pace during the quarter, which not only had a marginal positive impact on its sales growth, but also on gross margins.