Costco Wholesale Corp. (COST) reports fiscal first-quarter earnings Wednesday after the close, and Telsey Advisory Group likes what it sees. The warehouse retailer "continues to execute well in this uncertain operating environment," according to the firm.

What the Analyst Expects

Joseph Feldman at Telsey kept his Outperform rating and $1,100 price target intact, noting that Costco should keep capturing market share while maintaining profitability. The secret sauce? Solid sales momentum combined with those famously high membership renewal rates across roughly 145 million total members.

The numbers tell an encouraging story. Feldman projects total comparable store growth of 7.3%, which would mark a meaningful acceleration from last year's 3.1%. He's modeling core merchandise comps at 7.2% and core U.S. comps at 7%.

Shoppers Hunting for Value

Traffic should climb 4% compared to 3% in the prior year, Feldman estimates, as budget-conscious consumers make more frequent trips "in search of value." That value-seeking behavior matters in an environment where every dollar counts.

Meanwhile, average ticket size is expected up 3.3%, supported by inflation and what the analyst describes as "positive trends across product categories." It's the classic Costco formula: get people in the door more often, and they'll spend a bit more each visit.

Shares of Costco were down 0.62% to $907.89 on Monday.