Costco Wholesale Corp. posted higher-than-expected profit as moderating prices fueled consumer spending and store traffic climbed.

The big-box retailer reported earnings of $5.29 per share during the quarter ended Sept. 1, surpassing the average estimate of Wall Street analysts. The shares slipped 1.1% at 6:39 p.m. in late New York trading. The stock has risen 37% year-to-date through Thursday’s close.

As inflation cools, shoppers are purchasing more non-foods items, Chief Financial Officer Gary Millerchip said Thursday on a call with analysts. Home furnishings and tires sold particularly well, while some products, such as consumer electronics and appliances, are getting cheaper.

Sales of fresh food rose during the quarter, and executives said the company is cutting prices of some Kirkland-branded products such as boneless chicken tenderloins and Spanish olive oil. Manufacturers and retailers are also offering more discounts to sell products.

Shopper traffic increased in the US during the quarter from a year earlier, although visitors spent slightly less per trip. Costco said it gained more paid members, and roughly 90% renewed their membership during the quarter.

The company, which already posted sales for the period in monthly releases, has historically been insulated from macroeconomic challenges given that its shoppers pay membership fees and tend to be more affluent. US comparable sales rose 5.3% for the period. By that same measure, e-commerce surged nearly 19%.

Port Strike

Costco Chief Executive Officer Ron Vachris said the company has been preparing for a potential port strike along the US East and Gulf coasts. Costco, which primarily imports non-food items that make up about 25% of its total business, is getting some holiday goods earlier. It has also come up with contingency plans, such as shipping products to different ports.

US retailers have posted a quarter of mixed results, showing consumers are being selective and making trade-offs ahead of the holiday season. Early projections on holiday spending point to a slight increase in store sales and a bigger jump in online spending.

Walmart Inc. and Target Corp. said shoppers are focusing on buying essentials, but noted there haven’t been any new signs of pullback. Home Depot Inc., however, said consumers are deferring large purchases due to economic uncertainty, while dollar stores have said lower-income shoppers are under pressure.

Costco raised its membership fees in the US and Canada this month. It will likely take months to see how the change will affect renewal rates or sign-ups.