New York, NY, United States (4E) – Costco Wholesale Corp. reported a 15 percent decline in its fiscal second-quarter due to lower profit in global business, lower foreign-exchange rates and weak results from nonfoods merchandise categories.
The first four weeks of the quarter accounted for the majority of its poor bottom line, the company said. Total revenue climbed 6 percent to $26.3bn. Analysts forecast earnings at $1.17 per share and revenue at $26.65bn.
Costco said the poor profit was due to weak sales and profits from some nonfoods merchandise categories especially during the holiday shopping season; lower profits in global business due to declining foreign exchange rates; and low earnings on its fresh foods business.
Growth in sales slowed down recently, compared with other discount clubs, which is a bright spot in the retail sector as consumer buy in bulk to get some savings.
Profit was $463mn, or $1.05 per share, compared with $547mn, or $1.24 per share, in the previous year, for the quarter ended Feb. 16. A tax benefit of 14 cents per share was also included in the year-earlier quarter.