Costco Fourth-quarter Profit Rises, But Misses Estimates

(RTTNews) - Membership warehouses operator Costco Wholesale Corp. (COST) Wednesday reported a higher fourth-quarter profit, as total revenues improved with a rise in membership fees. Comparable sales were up 5 percent for the period. Meanwhile, earnings per share, as well as revenues missed analysts' expectations.

The company also provided sales results for the month of September, with 6 percent increase in net sales, and 3 percent rise in Comparable sales.

In the fourth quarter, net income attributable to the company increased to $617 million or $1.40 per share from $609 million or $1.39 per share in the previous year.

On average, 25 analysts polled by Thomson Reuters expected earnings per share of $1.46 for the quarter. Analysts' estimates typically exclude one-time items.

Total revenues for the quarter improved to $32.49 billion from $32.22 billion in the same quarter last year. Net sales edged up 1 percent to $31.77 billion from $31.52 billion in the 17-week fourth quarter of fiscal 2012. Analysts estimated revenues of $32.82 billion for the quarter.

Membership fees increased to $716 million from $694 million a year ago. Comparable sales improved 5 percent, with 5 percent growth in the U.S., and 4 percent increase internationally.

For the 52-week fiscal year ended September 1, 2013, net income attributable to the company climbed to $2.04 billion or $4.63 per share from $1.71 billion or $3.89 per share in fiscal 2012.

The company said its net income for the current fiscal was positively impacted by a tax benefit of $0.14 per share in the second quarter, in connection with the portion of special cash dividend paid in December 2012 to the company 401(k) plan participants.

Total annual revenues grew to $105.16 billion from $99.14 billion in the prior year. Net sales were $102.87 billion, an increase of 6 percent from last year, and Comparable sales were up 6 percent.

For the five-week reporting month of September, ended October 6, 2013, the firm reported net sales of $9.86 billion, up 6 percent from the same month last year. Comparable sales for the period were up 3 percent.

Excluding negative impacts from gasoline price deflation and foreign exchange, five-week comparable sales growth for the total company was 5 percent.

Costco currently operates 638 warehouses, including 454 in the U.S., and Puerto Rico, 85 in Canada, 34 in Mexico, 25 in the UK, 18 in Japan, 10 in Taiwan, nine in Korea, and three in Australia.

The company said it plans to open up to an additional 11 new warehouses before the end of calendar year 2013. Costco shares closed Tuesday's regular trading at $112.21 on the Nasdaq.