Costco profits come in below estimates as operating costs rise

 
City A.M. Reporter
COSTCO Wholesale posted a weaker-than-expected 1.3 per cent rise in quarterly profit yesterday as operating costs rose.

Costco earned $617m (£387m), or $1.40 per share, in the 16 week fourth quarter to 1 September, compared with $609m, or $1.39 per share, in the 17-week period a year earlier. Costs rose 0.8 per cent to $31.5bn, including a 1.8 per cent rise in selling, general and administrative (SG&A) expenses.

Costco, whose competitors include Wal-Mart Stores’ Sam’s Club and private chain BJ’s Wholesale Club, charges annual fees to shop at its cavernous stores, which stock everything from onions to computers. It typically prices gasoline at or below prices offered at nearby stations.

Total revenue, including membership fees, rose 0.8 per cent to $32.49bn. Same-store sales rose five per cent.