Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Costco Drops the Bag, Reports a Steep Decline in Quarterly Profit

Costco  (NASDAQ: COST  ) reported second-quarter earnings before the market opened today that missed analysts' estimates. For the quarter ended Feb. 16, Costco posted a profit of $463 million, or $1.05 per diluted share. That marked a 15% decline in profit from the same period a year ago, in which Costco earned $547 million, or $1.24 per diluted share. Wall Street was looking for earnings per share of $1.17 in the period.

Costco said revenue increased 6% in its second quarter to $25.76 billion, up from $24.34 billion last year. Analysts were looking for revenue of $26.65 billion in the quarter. The warehouse club blamed lower international profits and weak sales during the all-important holiday shopping season for its shortcomings in the period.

However, one bright spot from the quarter included a 4% rise in revenue from membership fees to $550 million, up from $528 million in the year-ago period. Additionally, sales at stores open more than 12 months increased 5% in the quarter, excluding negative impacts from gas prices and foreign exchange rates. Costco's chief executive, Richard Galanti, said in the company's press release that "the first four-week period of the quarter represented the majority of earnings underperformance in the quarter."

Looking ahead, Costco plans to open as many as 14 new warehouse stores in fiscal 2014. The company currently operates 649 retail outlets, with the bulk of those located in the United States. Shares of Costco were down more than 3% in early trading on Thursday.


Read/Post Comments (0) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2866284, ~/Articles/ArticleHandler.aspx, 9/3/2015 3:40:20 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Tamara Rutter

I've been an analytical writer for The Motley Fool since 2011. I cover the sectors of Consumer Goods, Technology, and Industrials. Connect with me on Twitter using the handle, @TamaraRutter -- I'd love to hear from you!

Today's Market

updated Moments ago Sponsored by:
DOW 16,374.73 23.35 0.14%
S&P 500 1,950.39 1.53 0.08%
NASD 4,743.48 -6.50 -0.14%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/3/2015 3:11 PM
COST $140.41 Down -0.01 -0.01%
Costco Wholesale CAPS Rating: *****