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Costco's Profits Up Big

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This matches what we've been hearing a lot lately. Grocery stores, discounters and warehouse clubs are cleaning up in the current economic environment as consumers continue to be extremely price-conscious.

Costco Wholesale Corp. reported a 32 per cent jump in third-quarter profits Thursday to top Wall Street expectations, as cash-squeezed customers flocked to its warehouse clubs in search of bargains on food and toiletries.

Costco reported net income rose to $295.1-million (U.S.), or 67 cents per share, from $224-million, or 49 cents per share, a year ago, which included a $30.3-million charge.

Sales increased 13 per cent to $16.26-billion from $14.34-billion in a year-ago period hurt by a $228.2-million boost in sales returns reserves. Including membership fees, revenue rose to $16.61-billion from $14.66-billion.

Analysts surveyed by Thomson Financial had expected profit of 65 cents per share on revenue of $16.35-billion.

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Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
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