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File photo of shoppers leaving a Costco outlet in New York. (Suzanne DeChillo/The New York Times)
File photo of shoppers leaving a Costco outlet in New York. (Suzanne DeChillo/The New York Times)

Costco results miss estimates as costs rise Add to ...

Warehouse club operator Costco Wholesale Corp reported third-quarter results below analysts’ estimates hurt by an increase in merchandise costs and other expenses.

Merchandise costs in the quarter ended May 11 rose about 7 per cent to $22.55-billion while selling, general and administrative expenses rose about 8 per cent.

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Net income for the quarter rose to $473-million, or $1.07 per share, from $459-million, or $1.04 per share, a year earlier.

Net sales at the largest U.S. warehouse operator rose 7 per cent to $25.23-billion.

Analysts on average expected a profit of $1.09 per share on revenue of $25.76-billion, according to Thomson Reuters I/B/E/S.

The warehouse retailer, which sells everyday items priced lower than supermarket competitors like Wal-Mart Stores Inc and Target Corp, operates 655 warehouses worldwide.

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