Costco Wholesale, the largest US warehouse-club chain, posted third-quarter profit that topped analysts’ estimates as sales gains outpaced those at discount rivals such as Wal-Mart Stores.
Profit in the three months through May 10 was $1.17 a share, the Issaquah, Washington-based company said Wednesday in a statement. The average of analysts’ estimates compiled by Bloomberg was $1.16.
Costco, which focuses on selling large volumes of goods to its members at low prices, has outperformed Wal-Mart and Target Corp. recently. Sales at Costco stores open a year or more rose 6 percent in the quarter, excluding changes in gasoline prices and foreign-currency exchange rates. In its most recent quarter, Target reported a 2.3 per cent gain, while Wal-Mart’s Sam’s Club warehouse chain posted a 0.4 per cent increase.
“Costco continues to gain warehouse-club share as their largest competitor is undergoing the early stages of a transformation effort,” David Schick, an analyst at Stifel Financial Corp., said in a note before the results were released.
Costco rose 1.5 per cent to $145.42 at the close in New York. The shares have gained 2.6 per cent this year. Sales in the quarter rose 1 per cent to $25.52 billion. Revenue from membership fees advanced 4 per cent to $584 million.
Bloomberg News, edited by ESM
