Costco announced their earnings for their second quarter this week and the news was not too shabby. Though expectations by analysts weren’t met (sometimes I swear it seems that they never are), they weren’t too far off the mark. There were increases all around – sales, membership, and profits – which seems like a good thing to me; much better than going the other way for sure.
Costco’s second quarter of their fiscal year, which begins in September, ended February 28. Costco reported earnings of $299 million, or 67 cents a share, for the quarter, up from $239 million, or 55 cents a share, a year earlier. Analysts were expecting 72 cents per share. There was also a one time charge of 3 cents per share related to employee benefits. Sales in the quarter rose 11 percent, to $18.74 billion from $16.84 billion. And their revenue from membership fees increased nearly 9 percent to $386 million. Much of the revenue gain came from higher gas prices and favorable currency exchange rates. The chief financial officer, Richard Galanti, said food sales were steady and discretionary categories like sporting goods and some housewares grew modestly.