GO
Loading...

Enter multiple symbols separated by commas

Costco Quarterly Profit Falls 4.9% Due to Charge, But Sales Rise

A Costco employee pulls shopping charts at a Costco Wholesale store.
Damian Dovarganes
A Costco employee pulls shopping charts at a Costco Wholesale store.

Warehouse retailer Costco Wholesale said Thursday its fiscal third-quarter profit declined 4.9 percent due to a charge, but sales advanced at a double-digit pace.

Income for the quarter ended May 13 slid to $224 million from $235.6 million. Per-share earnings were flat at 49 cents.

The latest quarter includes a $30.3 million charge to reflect the reduced gross margin on estimated future returns recorded in the increased sales return reserve.

Excluding the item, earnings per share were 56 cents, in line with the average analyst estimate, according to a Thomson Financial survey.

Sales rose 10 percent to $14.34 billion from $13.01 billion but were shy of the consensus estimate of $14.68 billion.

Costco booked a reserve to increase its sales returns reserve balance that trimmed sales in the most recent quarter by $228.2 million. Excluding the reserve, sales rose 12 percent to $14.57 billion.

Quarterly same-store sales rose 7 percent, reflecting a 7 percent domestic increase and 10 percent international growth.

Same-store sales, or sales at stores open at least a year, are a key measure of retailer performance, because they measure growth at existing stores rather than from newly opened ones.

`

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • This Day in History, May 28

    On this day in history, Chrysler Corporation merges with Dodge Brothers in 1928; in 1987, CompuServe releases new GIF file format, and in 2014, Apple buys Beats Electronics for $3 billion.

  • Bouncing markets await rate date

    There's a big play out there on the June 18th calls on the VIX, says Joe Kinahan, TD Ameritrade, sharing his thoughts on market volatility and why there will be more clarity once a definitive date is set for an interest rate hike.

  • China stocks plunge, Shanghai Comp sheds 6.5% in selloff

    CNBC's Sri Jegarajah reports China stocks sank on fears of tighter margin loan rules. This was a conviction selloff lead by the brokerages, say Jegarajah.