Costco achieved a profit of $239.7 million ($0.55 per share),for the quarter ended February 15, down about $90 million from$327.9 million ($0.74 per share) a year earlier. Analysts' averageexpectation was for earnings of approximately $0.60 per share,which was reduced last month after Costco warned that its resultswould be "substantially below" $0.70 cents a share as a result ofits price reduction.

Costco's quarterly sales fell 1% to $16.49 billion whilemembership fees gained 4% to $355.6 million. Sales at clubs open atleast a year, a key retail gauge known as same-store sales, fell3%. Peering into its third fiscal quarter, Costco also said Tuesdaythat its same-store sales in February also were down by 3%, 30basis points more than analysts had expected. Other major USretailers also are expected to report February sales this week;excluding Walmart, the industry average is expected to be a 4.8%drop.

"Both total sales and comp sales were significantly impacted byboth gasoline price deflation and by the strengthening in the USdollar," Costco EVP/CFO Richard Galanti told analysts Wednesday,explaining that overall quarterly sales actually rose 4% exceptinggas sales and same-store sales rose 5% excepting gas sales as wellas the cost of exchanging international dollars into US dollars.Looking just at February, Galanti said the overall comp is -3% butis +5% excluding gas sales.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.