Costco earnings: Wage inflation 'a continued issue' for the retailer, analyst says

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Investors' reactions to the retail stalwart's fourth quarter earnings were somewhat mixed.

The Costco business "does tend to be fairly recession-proof," Kodali explained, adding that Costco is "similar to other mass merchants like Walmart in large part because when a consumer may have lower expectations for the future, they're going to fly to value."

"We believe COST's consistency stands out as another factor that supports its premium valuation," BMO Capital Markets analyst Kelly Bania said. Membership fees revenue came in at $1.51 billion, higher than Wall Street expectations of $1.46 billion. In the third quarter, the company brought in $1.04 billion in membership fee revenue.

Costco delayed increasing membership costs again this quarter, though Costco's Galanti reiterated that the fee increase is "a question of when, not if."

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