Discount retailer Costco Wholesale Corporation (NASDAQ:COST) announced its quarterly results with better-than-predicted surge in profit for its financial first quarter, as same-store sales surged for the first time in the past three quarters.
Costco Wholesale Corporation (NASDAQ:COST) stock plunged 7.9% over the past 12 months, dropped 1% after hours to $152.30 as overall revenue came just short of Wall Street expectations.
The big box retailer’s latest results arrived amid the relatively positive forecast for the holiday season among some of the biggest players in the hard retail sector. Macy’s Inc. and Kohl’s Corp. have posted optimistic outlooks for the crucial holiday season, despite ongoing struggles with changing shopping habits and competition from discounters. And last month, Wal-Mart Stores Inc. also hit in with the prospect that consumer spending would remain solid during the holidays.
In the meantime most of the sector has find it hard to keep pace with Amazon.com Inc., though, which has online sales more than the combined e-commerce sales of the next 20 U.S. retailers, Costco among them.
Furthermore Company’s same-store sales, which have been dreary in recent periods, go slightly up 1%, and was better than 1% retreat logged a year ago and was in line with the estimate of analysts.
In the last three month period, Costco posted a profit of $545 million, or $1.24 a share, up from $480 million, or $1.09 a share, year over year. Company’s revenue surged 3.2% to $28.1 billion. Its net sales go up 3.2% to $27.5 billion, while membership fees surged to $630 million from $593 million. In contrast analysts forecasted earnings of $1.19 a share on $28.3 billion in revenue.
Costco Wholesale Corporation (NASDAQ:COST) also said that the latest result was aided from a $51 million legal settlement that added 7 cents a share to earnings.