Costco Wholesale on Tuesday beat Wall Street’s earnings estimates for the quarter ended last August, though sales suffered from a strong rise in the U.S. dollar and a big drop in the price of fuel.
Costco Wholesale on Tuesday beat Wall Street’s earnings estimates for the quarter ended in August, though sales suffered from a strong rise in the U.S. dollar and a big drop in the price of fuel.
The Issaquah-based warehouse club said its quarterly earnings rose to $767 million, or $1.73 per diluted share, from $697 million or $1.58 per diluted share in the same period a year ago. Analysts had expected $1.66 per share in profits. Costco says its earnings were boosted to the tune of 13 cents per share by a $57 million tax benefit.
Sales in stores that were open last year rose 2 percent in the quarter in the U.S., but dropped 10 percent in Canada and 7 percent in other international operations. That gave the entire Costco footprint a 1 percent drop in so-called comparable sales.
Factoring out foreign exchange gyrations and the drop in the cost of gasoline, which can account for up to a tenth of the company’s revenue, Costco grew 6 percent in the the U.S., 7 percent in Canada, and 6 percent in all markets.
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Shares were down 1.2 percent in after-hours trading, to $142. Costco said it will have a conference call at 8 am on Wednesday to discuss the results.