Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Shares  >  Nasdaq  >  Costco Wholesale Corporation    COST

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

COSTCO WHOLESALE : Costco profit drops 27 percent

03/04/2009 | 04:32am US/Eastern

(Reuters) - Costco Wholesale Corp said on Wednesday its second-quarter profit fell 27 percent, as the No.1 U.S. warehouse club operator cut prices to win market share during the year-end holiday season.

Costco said profit was $239.7 million, or 55 cents per share, for its fiscal second quarter ended February 15, compared with $327.9 million, or 74 cents per share, a year earlier.

Analysts had on average expected earnings of 60 cents per share, according to Reuters Estimates.

Quarterly sales fell 1 percent to $16.49 billion, excluding membership fees, which increased about 4 percent to $355.6 million. Sales at clubs open at least a year, a key retail gauge known as same-store sales, fell 3 percent.

The retailer said same-store sales in February also fell 3 percent. Analysts were expecting February same-store sales to fall 2.7 percent.

"Our quarterly results were hurt by the continued weakness in non-foods sales and related margins. Margins in foods and non-foods were also negatively affected by increased pre-holiday seasonal markdowns and other selective price reductions to drive sales and increase market share," Chief Financial Officer Richard Galanti said in a statement.

Costco has said it would be aggressive in cutting prices or delaying price increases to retain its shoppers during the recession, though Wall Street analysts have said that strategy would hurt profits.

Last month, it said second-quarter results would be "substantially below" the First Call consensus of 70 cents a share after it reduced prices to attract shoppers during the holiday season.

(Reporting by Ratul Ray Chaudhuri in Bangalore, additional reporting by Nicole Maestri in New York, editing by Will Waterman)

React to this article
Latest news on COSTCO WHOLESALE CORPORATI
08/01 COSTCO WHOLESALE : Open lot on SPID generates excitement
07/31 COSTCO WHOLESALE : County discusses Md. 75, CSX bridge solutions
07/31 COSTCO WHOLESALE : New Jersey sheriff's officer rescues child from hot minivan
07/30 COSTCO WHOLESALE : Bellingham gives Costco go-ahead to start work for new store
07/30 COSTCO WHOLESALE : Announces Quarterly Cash Dividend
07/30 BANK OF AMERICA : Credit-card-processing.com examines wells fargo, square reader..
07/29 COSTCO WHOLESALE : FiveStar Gourmet Foods Launches Two New Fresh Salad Lines at ..
07/28 DAILY DIVIDEND REPORT : Hig, ibm, cost, exc, cce, dhi, cma, gpn, wcn, cr
07/28 COSTCO WHOLESALE : Where2GetIt Evaluates the Brand Strength of Sam's Club Versus..
07/28 Square Reader compared to Bank of America, Costco, Paypal and Wells Fargo by ..
Advertisement
Chart
Duration : Period :
Costco Wholesale Corporati Technical Analysis Chart | COST | US22160K1051 | 4-Traders
Income Statement Evolution
More Financials