Costco misses quarterly sales estimates, shares fall

(Reuters) - Costco Wholesale Corp <COST.O> on Thursday reported quarterly revenue below Wall Street estimates, as the warehouse club operator cut prices and invested more in its online business to compete with Amazon.com Inc <AMZN.O> and Walmart Inc <WMT.N>.

Shares of the company were down nearly 4 percent at $218.49 in extended trade.

Total revenue rose 10.2 percent to $35.07 billion, missing analysts' average estimate of $34.80 billion, according to IBES data from Refinitiv.

However, sales at established warehouses, excluding the impact of fuel and currency changes, rose 7.5 percent for the first quarter ended Nov. 25, well above estimates of 5.8 percent.

Net income attributable to the company rose to $767 million, or $1.73 per share, from $640 million, or $1.45 per share, a year earlier.

(Reporting by Nivedita Balu in Bengaluru; Editing by Anil D'Silva)

12/13/2018 16:44

News, Photo and Web Search