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ISSAQUAH, Wash. — Costco Wholesale Corp. on Wednesday cited higher sales at its established stores in posting a fourth quarter profit that exceeded analysts’ estimates.
Costco Wholesale Corp. on Wednesday cited higher sales at its established stores in posting a fourth quarter profit that exceeded analysts’ estimates.
Higher revenue from membership fees contributed to the 13% increase in quarterly profit at the nation’s largest warehouse club chain.
Costco’s growth contrasts with tepid sales at other large discount chains.
The retailer posted net income of $697 million, or $1.58 a share, from $617 million, or $1.40, a year earlier. Wall Street was looking for per-share profit of $1.52, according to Thomson Reuters.
Costco’s total fourth quarter sales rose 9.3% to $35.5 billion in the three months through August. Same-store sales were up 7% in the quarter, excluding negative impacts from lower gasoline prices and foreign exchange.
Revenue from membership fees rose 7% to $768 million. The company said sales of apparel, fresh food, housewares and small appliances were strong performers in the period.
The company operates 664 warehouses, 469 of which are in the United States and Puerto Rico. Costco has 88 warehouses in Canada, 33 in Mexico, 26 in the United Kingdom, 20 in Japan, 11 in South Korea, 10 in Taiwan, six in Australia and one in Spain.
Costco plans to open as many as eight new stores, including one relocation, through the end of the year.
