The largest warehouse-club chain in the U.S., Costco Wholesale Corp., reported a profit, that outpaced initial analysts forecasts over the quarter that ended in November. The reported figure came as a result of increased sales at established stores over the period. Costcos profit also benefited from membership fees.
The U.S.-based company, currently one of the biggest fuel retailers in the country, is focused on selling groceries and a variety of items in bulk.
The profit figure have also been supported by lower gasoline prices.
According to Costcos announcement, its net income over the first fiscal quarter increased 17% from $425 million, or 96 cents a share a year ago to $496 million, or $1.12 per share. In comparison, analysts had forecast a net profit of $1.09 per share during the first quarter of the companys fiscal year.
Costco also revealed there was a 7% increase in its same-store sales over the first financial quarter, which ended on November 23rd, excluding the negative impacts from gasoline price deflation and foreign exchange.
As the warehouse-club chain reported, its total revenue, including membership fees, rose by 7% to reach $26.87 billion. This result came below analysts projections, pointing to a revenue of $26.92 billion.
Costco Wholesale Corp. was up 0.50% to close at $143.04 per share yesterday, marking a one-year gain of 17.57%. The company is valued at $62.31 billion. Its shares traded at €117.00 in Frankfurt as of 12:03 GMT. According to CNN Money, the 25 analysts offering 12-month price forecasts for Costco Wholesale Corp. have a median target of $141.00, with a high estimate of $160.00 and a low estimate of $90.00. The median estimate represents a -1.43% decrease from the last price of $143.04.
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