Revenue rose 14% to $31.52 billion as membership fees surged 18%. The company was expected to earn $1.31 on revenue of $31.69 billion. Same-store sales, a key retail metric, rose 6% when the effect of gasoline is excluded. Margins rose 20 basis points.

Costco, whose shares have risen about 20% this year, has room to run even though the stock is trading above its 52-week price target of $86.50. The chain has 608 locations and plans to open as many as 14 additional ones before the end of the year. There are 439 Costcos in the U.S. and Puerto Rico, 82 in Canada and 32 in Mexico, so there are plenty of opportunities for expansion. Sales may continue to grow in existing stores as well.
 
Consumers are feeling more confident as the presidential election nears, though they are hardly in the mood to spend as they did before the Great Recession. People want value for their money, and that's what they get at Costsco. My family has shopped there for years and has been impressed by the quality of the company's Kirkland products. Unless the economy tumbles into a black hole, Costco will be just fine.

The chain appeals to many different types of consumers because the breadth of its products and services is remarkable. Small businesses can buy office supplies. Families, particularly large ones, can find great deals on perishable goods. People can also get great deals on big-ticket items like jewelry and big-screen televisions. Costco also offers travel services, as well as deals on birthday cakes and caskets. That last item is no joke.

Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter@jdberr.