Customers walk toward a Costco Wholesale Corp. store in Nashville, Tenn., on Friday, Sept. 25, 2015.Luke Sharrett/Bloomberg
Costco Wholesale Corp., the second-largest U.S. retailer, reported fourth-quarter earnings that topped analysts' estimates as the warehouse-club chain continues to attract new members.
Net income rose 10 per cent to $767-million (U.S.), or $1.73 a share, the Issaquah, Washington-based company said 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 Stores Inc., Costco has continued to pick up discount shoppers. Costco's sales rose 1 per cent to $35-billion, helped by a 2.2 per cent gain in membership fees.
Costco shares rose 0.6 per cent to $144.57 at the close in New York. The stock has gained 2 per cent this year.
The company posted $35.8-billion in total revenue for the fourth quarter, which ended Aug. 30. That matched analysts' estimates, according to data compiled by Bloomberg.
Excluding the effect of falling gas prices and foreign– exchange fluctuations, Costco's same-store sales grew 6 per cent last quarter.