Costco 1Q Net Inches Up 2.6%; Shares Slump 2%
Profits at Costco (NASDAQ:COST) ticked up 2.6% last quarter as a rise in revenue at the warehouse giant was largely offset by charges and rising merchandise costs.
The Issaquah, Wash.-based company said it earned $320 million, or 73 cents a share, last quarter, compared with a profit of $312 million, or 71 cents a share, a year earlier. Excluding one-time items, it earned an in-line 80 cents a share.
Costco, which is the No. 1 U.S. warehouse club operator, said its total revenue climbed 12% to $21.63 billion, narrowly topping the Street’s view of $21.46 billion. Revenue from membership fees increased 7.5%.
Same-store sales jumped 10% overall and by 7% excluding fuel sales.
Wall Street appeared to be unimpressed with the results, sending Costco’s shares dropping 2.3% to $85.52 early Thursday. The bar had been raised on management to beat expectations as Costco’s shares were up 21% on the year as of Wednesday.