New York - Costco Wholesale Corporation, the second-largest US retailer, reported fourth-quarter earnings that topped analysts’ estimates as the warehouse-club chain continues to attract new members.
Net income rose 10 percent to $767 million, or $1.73 a share, the Issaquah, Washington-based company said on Tuesday in a statement. Analysts’ estimated $1.66 a share on average.
Costco, which focuses on selling large volumes of goods to its members at low prices, has been performing better than rivals recently.
While customers have complained about empty shelves and messy stores at Wal-Mart, Costco has continued to pick up discount shoppers. Costco’s sales rose 1 percent to $35 billion, helped by a 2.2 percent gain in membership fees.
Costco shares rose 0.6 percent to $144.57 at the close in New York. The stock has gained 2 percent this year.
The company posted $35.8 billion in total revenue for the fourth quarter, which ended on August 30. That matched analysts’ estimates, according to data compiled by Bloomberg.
Excluding the effect of falling fuel prices and foreign-exchange fluctuations, Costco’s same-store sales grew 6 percent last quarter.
BLOOMBERG