Costco: shares fall as operating profit shrinks
(CercleFinance.com) - Costco Wholesale posted higher fourth-quarter sales, although the shares of the largest US warehouse club operator fell this Friday as its operating profit fell slightly over the period.
For the quarter ended 2 September, the Issaquah, Washington-based retailer posted operating income of 1.44 billion dollars, compared with 1.45 billion dollars a year earlier.
This is because merchandise costs rose to 38.7 billion dollars from 36.7 billion dollars a year ago, while selling, general and administrative costs rose to 4.6 billion dollars from 4.1 billion dollars.
In the meantime, sales for the 16-week fourth quarter rose 9.5% to 43.4 billion dollars, with sales at stores open at least a year rising 7.2%, it said.
After these results, Costco shares were trading down 3% in morning trading.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
For the quarter ended 2 September, the Issaquah, Washington-based retailer posted operating income of 1.44 billion dollars, compared with 1.45 billion dollars a year earlier.
This is because merchandise costs rose to 38.7 billion dollars from 36.7 billion dollars a year ago, while selling, general and administrative costs rose to 4.6 billion dollars from 4.1 billion dollars.
In the meantime, sales for the 16-week fourth quarter rose 9.5% to 43.4 billion dollars, with sales at stores open at least a year rising 7.2%, it said.
After these results, Costco shares were trading down 3% in morning trading.
Copyright (c) 2018 CercleFinance.com. All rights reserved.