By Anuja Bharat Mistry

May 30 (Reuters) - Costco Wholesale ( COST ) beat

third-quarter revenue expectations on Thursday, as cash-strapped

consumers flocked to its warehouses to grab low-priced

discretionary items and groceries.

The membership-only retailer saw strong momentum for its

fresh foods and bakery items including newly added products

lemon blueberry loaf and morning buns, and chocolate chop cookie

as consumers grappling with still-high cost of living preferred

cooking more meals at home.

"As inflation has leveled off, members are returning to

purchasing more discretionary items, with growth led by toys,

furnishing, lawn and garden supplies as well as health and

beauty aids products," CFO Gary Millerchip said on a

post-earnings call.

Earlier this month, retail bellwether Walmart ( WMT ) beat

quarterly estimates and forecast positive annual targets,

supported by steady demand for cheaper groceries and

expectations of a rebound in demand for non-essentials.

Another larger peer Target ( TGT ), however, reported a dour

quarter on tepid consumer spending.

Costco's total revenue was $58.52 billion for the

quarter ended May 12, compared with analysts' average estimate

of $58.07 billion, according to LSEG data.

The company also posted a profit of $3.78 per share, above

estimates of $3.70.

"In a world where most retailers have suffered from some

sort of volatility or pocket of softness, Costco is a rare

beacon of consistency," said Scot Ciccarelli, analyst at Truist

Securities.

In the first quarter, visits to Costco Wholesale ( COST ) were up

8.9% on a year-over-year basis, while visits to Walmart ( WMT ) and

Target ( TGT ) were up 3.9% and 3.5% respectively, as per Placer.ai

data.

Costco's total comparable sales rose 6.5% on an adjusted

basis in the quarter, compared to a 3.5% rise last year.

The company's ecommerce comparable sales rose 20.7%, led

by gold and silver bullion, gift cards and appliances.

Shares of the company were down 1.7% in after-market

trading amid broader market

declines

.