Costco posts quarterly sales near $60 billion. It wasn't enough to boost the stock.
By Claudia Assis
Costco shares drop 4% after retailer reports a mixed quarter
Costco Wholesale Corp.'s shares headed more than 4% lower in the extended session Thursday after the warehouse retailer reported a mixed quarter, with sales that came in below Wall Street's estimates.
Costco (COST) earned $1.74 billion, or $3.92 a share, in the fiscal second quarter, compared with $1.47 billion, or $3.30 a share, in the year-ago period.
Total sales rose 5% to $58.4 billion, from $55.3 billion a year ago. Same-store sales rose 5.6%, ahead of expectations of 5% growth. E-commerce sales rose slightly more than 18%.
Analysts polled by FactSet expected the retail giant to report GAAP earnings of $3.61 a share on sales of $59.1 billion.
Costco's earnings came in a busy week for retailers, with several reporting that its customers were still feeling the pinch from rising costs. Target Corp. (TGT) on Tuesday beat expectations for its quarterly profit, but said its shoppers still "feel stretched."
Off-price retailer Ross Stores Inc. (ROST) followed a similar path, saying that higher costs for gas, housing and food pressured its customers.
Also on Thursday, Gap Inc. (GPS) said its lower-priced brand Old Navy helped lift the retailer's quarterly profit.
Costco shares have rallied nearly 62% in the past 12 months, compared with gains of about 30% for the S&P 500 index SPX.
-Claudia Assis
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03-07-24 1712ET
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