Costco (COST) reported mixed fiscal fourth quarter results on Thursday after the market close.

Earnings per share for the wholesale giant beat estimates, coming in at $5.29, compared to Bloomberg consensus estimates of $5.07. But the company posted a slight miss on revenue, with $79.7 billion, compared to expectations of $79.96 billion.

"It's very clear that quality and value have never been more important," CFO Gary Millerchip told investors on an earnings call. "As you look at our trends in the year to date, we have seen that as inflation has dissipated, our members have started to spend more on nonfood items, which is really encouraging in our mind."

Costco stock fell 1.4% in extended trading early on Friday morning. Year to date, shares are up nearly 40%, versus a 20% gain for the S&P 500 (^GSPC).

Costco's same-store sales came in higher than expected at 6.9%, compared to estimates for a 6.4% increase, while e-commerce sales jumped 19.5%, slightly lower than the 19.63% growth Wall Street was hoping for. These increases were led by sales growth in appliances, health and beauty aids, tires, toys, and gift cards, among other items.

Nonfood items saw high comparable sales in Q4 as consumers slowly shifted from focusing solely on necessities and grocery spending. Gold and jewelry, gift cards, toys, home furnishings, and tires, among other items, were up double digits in the quarter.

There was a lot of optimism heading into this report, with 26 Buy ratings on the Street, 18 Holds, and one Sell.

Prior to the release, UBS analyst Michael Lasser wrote that the company is "clearly gaining market share" with consistent traffic growth and a "faster recovery in general merchandise" sales than its competition.

In August, Costco's foot traffic jumped 10.5%, per data analytics firm Placer.ai, as the company competed on value with big box retailers and its closest peers, Sam's Club (WMT) and BJ's (BJ). Overall, the superstores and wholesale club sector saw a 4.9% increase in foot traffic.

Millerchip said value is "resonating" with members with lower prices for fresh items like its private-label brand chicken tenders.

"We lowered the price 13% and saw a 21% lift in pounds sold," Millerchip said. In addition, Costco also lowered prices on other items like foil, macadamia nuts, and olive oil, among other times.

CEO Ron Vachris added that penetration for its private label Kirkland Signature brand continues to grow, saying that it adds to the "value proposition" for members and builds loyalty.