Costco's net income rises, revenue climbs

Currently in Washington state liquor sales are run by the state. Seventy-seven percent of a ballot initiative to privatize liquor sales is financed by big box store Costco who has spent $4.8 million on the initiative. Costco is based in Issaquah, Washington.
file,AP Photo

ISSAQUAH, Wash. - Costco Wholesale Corp. (COST) says its fiscal second-quarter net income rose 13 percent as sales improved and it made more money from membership fees.

The wholesale club operator reported Wednesday that it earned $394 million, or 90 cents per share, for the period ended Feb. 12. That's up from $348 million, or 79 cents per share, a year ago.

Revenue increased 10 percent to $22.97 billion.

Analysts expected earnings of 88 cents per share on revenue of $22.74 billion.

Revenue at stores open at least a year climbed 8 percent. The figure also rose 8 percent in the U.S. and overseas during the quarter. Excluding higher gas prices and the negative impact of foreign currencies, revenue at stores open at least a year increased 7 percent.

Costco, based in Issaquah, Wash., currently runs 600 warehouses.