Membership warehouses operator Costco Wholesale Corp. (COST: Quote) Tuesday said profit in the second quarter increased significantly from last year, helped by higher sales as well as increased membership fees. The retailer’s established stores saw a 5 percent growth in comparable store sales in the quarter.
Net income attributable to the company increased to $547 million or $1.24 per share from $394 million or $0.90 per share in the prior year. The latest results included a $62 million or $0.14 per share tax benefit relating to the portion of the special cash dividend paid in December 2012.
On average, 21 analysts polled by Thomson Reuters expected earnings per share of $1.06 for the quarter. Analysts’ estimates typically exclude one-time items.
Total revenue rose to $24.87 billion from $22.97 billion. Analysts estimated revenues of $25.05 billion for the quarter.
Net sales climbed 8 percent to $24.34 billion from last year’s $22.51 billion. Revenue from membership fees increased to $528 million from $459 million in the previous year.
For the 12-week period, comparable sales rose 5 percent with a 5 percent growth in the U.S. and a 6 percent increase in the International business.
The compay said inflation in gasoline prices and stronger foreign currencies positively impacted comparable sales. Excluding these effects also, comparable sales growth was 5 percent for the quarter.
Costco currently operates 622 warehouses, including 448 in the U.S. and Puerto Rico and 85 in Canada.
The warehouse retailer plans to open up to an additional fourteen new warehouses before the end of its fiscal year on September 1.
COST closed at $102.44 on Monday.
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by RTT Staff Writer
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