Costco Wholesale (COST) posted a fiscal first-quarter earnings beat, with e-commerce sales rising 13% year over year. Jefferies Senior VP of Equity Research Corey Tarlowe joined the Morning Brief to discuss the company's performance.

"I think the results speak for themselves," Tarlowe tells Yahoo Finance. "40 years of really consistent results, and this quarter was just another proof point."

He highlights the company's impressive market share and margins, noting Costco posted 5% comparable sales in the US. This growth was primarily driven by continued customer traffic, with Tarlowe emphasizing that "membership is really at the core of what they're doing here."

The company achieved its highest operating margin in over two decades. Tarlowe explains that membership increases allow Costco to invest in the business "while still driving flow through to the bottom line."

Regarding expansion plans, Tarlowe notes, "They're opening clubs at the fastest rate on a nominal basis that they've ever done. Costco's opening... 25-30 units a year, and most of those are actually indexing to the US." While the company wants to expand its international footprint, Tarlowe believes "there's just so much opportunity in existing markets."

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This post was written by Angel Smith