ISSAQUAH, Wash. - Costco's (COST) fiscal first-quarter net income rose 2 percent as sales improved and the wholesale club operator pulled in more money from membership fees.
But the Issaquah, Wash. company's
performance missed analysts' estimates. Its stock dropped in premarket trading
For the period ended Nov. 24, Costco
Wholesale Corp. earned $425 million, or 96 cents per share. That's up from $416
million, or 95 cents per share, a year earlier.
Analysts, on average, expected
earnings of $1.03 per share, according to a FactSet poll.
Revenue increased 6 percent to $25.02
billion from $23.72 billion. Wall Street expected $25.3 billion in revenue.
Revenue from membership fees rose to
$549 million from $511 million.
Sales at stores open at least a year
climbed 3 percent. In the U.S, the metric also rose 3 percent. It edged up 1
This figure is a key gauge of a
retailer's health because it excludes results from locations recently opened or
Taking out the impact of lower gas
prices and foreign currency exchange fluctuations, sales at stores open at
least a year increased 5 percent. The metric rose 4 percent in the U.S. and
climbed 6 percent abroad.
Costco currently runs 648 warehouses,
including 461 in the U.S. and Puerto Rico, 87 in Canada, 33 in Mexico, 25 in
the U.K., 18 in Japan, 10 in Taiwan, nine in Korea and five in Australia.
The company's stock dropped $5.21, or
4.3 percent, to $114.83 in premarket trading three hours before the market