US: Costco profits top estimates
Net income in the quarter ended Aug. 31 rose 27 percent to $609 million, or $1.39 a share, from $478 million, or $1.08, a year earlier, the company said in a statement. Analysts projected $1.31, the average of 25 estimates compiled by Bloomberg.
Chief Executive Officer Craig Jelinek has been keeping prices low and adding more service areas, such as vision centers, to increase store visits. The retailer has also been selling more private-label goods to improve profit margins.
Same-store sales, a key metric for retailers because only established locations are counted, rose 6 percent, excluding changes in gas prices and currency rates, the company reported on Oct. 4. Net sales gained 14 percent to $31.5 billion.
Source: businessweek.com
