Retail
Costco reports increase in third-quarter earnings
By Seattle Business Magazine May 25, 2011
Bolstered by brisk sales and increased membership fees, Issaquah-based Costco Wholesale Corp. reported earnings of $324 million, or 73 cents per share, for its third quarter. This compares to $306 million, or 68 cents per share, a year ago. Sales for the quarter rose 16 percent, to $20.2 billion, from $17.4 billion the year before.
Despite the strong performance, the company fell short of the 77 cents per share expected by Wall Street. Costco’s leadership warned that higher costs of raw goods would continue to erode margins in subsequent quarters.
The company announced plans to open more than 10 additional warehouses around the world. In recent years, Costco has aggressively expanded into Japan, Korea and Taiwan. Further expansion has occurred in Canada, Mexico and Australia.