Core Insights - Costco Wholesale reported strong fiscal Q1 earnings, with revenue increasing by 8% to $67.31 billion and adjusted EPS rising by 11% to $4.50, surpassing analyst expectations [5] - Despite strong sales momentum, Costco's stock has declined nearly 5% year-to-date and is about 11% lower over the past year [1] Sales Performance - E-commerce sales surged by 20.5%, with traffic increasing by 24% and average order value up by 13% [2] - Same-store sales grew by 6.4% when adjusted for gasoline prices and foreign currency, with U.S. same-store sales rising by 5.9% and Canadian comparable-store sales climbing by 9% [6] - Membership-fee revenue increased by 14% year-over-year to $1.33 billion, supported by a price hike in September 2024 [8] Membership Dynamics - Paid memberships rose by 5.2% to 81.4 million households, with higher-cost executive memberships increasing by 9.1% to 39.7 million [8] - Membership renewal rates were 92.2% in North America and 89.7% worldwide, although younger consumers showed lower renewal rates [9] Expansion and Future Outlook - Costco opened eight new locations in the quarter, bringing the total to 921 stores, but reduced its new store outlook to 28 for the fiscal year due to delays [10] - The stock's forward P/E ratio is currently at 43.5, which is below its earlier valuation this year but still higher than historical averages [12] - The company is expected to remain range-bound in stock performance over the next year as it works to align its valuation with its strong operational performance [14]