The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Costco Wholesale Corp reported quarterly profit that fell short of estimates, and US sales, while still brisk, also slightly missed. The company’s shares fell in late trading.
Same-store US sales excluding gas rose 5.2% in the quarter, falling just short of analysts’ projections compiled by Consensus Metrix. Earnings per share were $2.47, below the average estimate of $2.54.
Costco already reported sales for most of the quarter, so investors were also watching metrics like membership fee growth and member renewal rates. Revenue from membership fees rose in the quarter — and that’s a positive sign for the retailer since those annual dues generate a bulk of Costco’s profit.
The retailer’s treasure hunt store experience is hard for other retailers to match, but it’s still in the early innings of its e-commerce expansion. Online sales rose 21.9% in the latest quarter at Costco.
Costco’s quarterly report was light on details. Management will share more details on its analyst call at 5 pm.