Retail giant Costco warned that energy costs and pricing strategy will take its profit 'well below' expectations. Is that a sign of what's to come from the retail sector?
Costco Wholesale Corp warned on Wednesday that its quarterly profit would miss current Wall Street targets because of soaring energy costs and other inflationary pressures, sending shares of the No. 1 U.S. warehouse club operator tumbling by the close.
The warning sparked fears that competitors like Wal-Mart and BJ's Wholesale Club , which have been standouts in a struggling U.S. retail sector, could be facing similar woes. Shares of those companies also fell.