Costco's sales soared during the holidays as customers flooded into stores for groceries, toys, and electronics.
Sales at US stores open for at least a year grew 7.4% last quarter compared to a year earlier, the company said Thursday. Costco's profit also grew.
The combination drove up Costco's stock 4% in after-hours trading.
Costco (COST) joined Walmart, Target and Best Buy among retail's winners during the holiday stretch. The company has successfully staved off Amazon by keeping prices low and investing in its Kirkland Signature brand.
Costco also plans to raise its minimum wage. Amazon recently bumped up its minimum wage to $15 an hour.