:max_bytes(150000):strip_icc()/GettyImages-2161665709-34e7a86d67fc47b394053d919ab98973.jpg "Costco’s Earnings Top Estimates, But Sales Miss as Growth Slows")
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Key Takeaways
- Costco Wholesale reported fiscal fourth-quarter earnings that topped analysts’ expectations but narrowly missed on revenue.
- The warehouse retailer’s e-commerce sales came short of estimates despite rising 18.9% year-over-year, as the pace of growth slowed.
- While Costco’s recent hike in membership fees didn’t impact the period, investors will be watching how higher fees could affect the company’s results going forward.
Costco Wholesale (COST) reported fiscal fourth-quarter earnings that topped analysts’ expectations but narrowly missed on revenue as growth slowed.
The membership-based retailer’s net income climbed 7% from a year ago to $2.35 billion or $5.29 per share, topping the analyst consensus compiled by Visible Alpha. However, revenue rose just 1% year-over-year to $79.7 billion, slightly short of projections.
Costco’s e-commerce sales came short of estimates despite rising 18.9% year-over-year, as the pace of growth slowed from over 20% in the prior quarter. Same-store sales were up 5.3% in the U.S. and 5.5% in Canada, slowing from the previous quarter as well.
Thursday’s report was the warehouse retailer’s first since raising its membership fees. While the higher fees went into effect as the period ended and didn’t impact Costco’s latest results, investors will likely be watching how they could affect the company’s earnings going forward.
Costco shares slid about 1% to $892.55 in extended trading Thursday following the release.