Costco Q4 Profit Tops Estimates As Comps Rise

(RTTNews) - Membership warehouses operator Costco Wholesale Corp. (COST) Wednesday reported higher fourth-quarter profit on increased net sales and comparable sales. Earnings per share topped analysts' expectations.

For the 16 weeks ended August 31, net income attributable to the company increased to $697 million or $1.58 per share from $617 million or $1.40 per share in the previous year.

On average, 26 analysts polled by Thomson Reuters expected earnings per share of $1.52 for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 9 percent to $34.76 billion from $31.77 billion reported last year. Total revenue was $35.52 billion, up from $32.49 billion a year earlier. Analysts projected revenue of $35.47 billion for the quarter.

Comparable sales improved 6 percent compared to the previous year. The growth was 6 percent both in the U.S., and internationally. Excluding negative impacts from gasoline price deflation and foreign exchange, 16-week total comparable sales rose 7 percent.

For the fiscal year, net income attributable to the company was $2.06 billion or $4.65 per share, up from $2.04 billion or $4.63 per share in fiscal year 2013. Net income for the prior year was positively impacted by a $0.14 per share tax benefit in connection with the portion of special cash dividend paid in December 2012.

Annual net sales increased 7 percent to $110.21 billion from $102.87 billion last year.

For the month of September, the firm posted net sales of $10.57 billion, up 7 percent from prior year's $9.86 billion. Comparable sales for the five-week period improved 4 percent, and was up 6 percent before negative impacts from gasoline price deflation and foreign exchange.

Costco currently operates 664 warehouses, including 469 in the United States and Puerto Rico, 88 in Canada, 33 in Mexico, 26 in the UK, 20 in Japan, among others.

The company plans to open up to an additional eight new warehouses, including one relocation, before the end of calendar year 2014.

COST closed Tuesday's trading at $125.27, down 0.74 percent.