ISSAQUAH, Wash.–Due to energy costs and other inflation factors, Costco said earnings for its fiscal fourth quarter, ending Aug. 31, are expected to be well below the current earnings-per-share estimate of $1. The retailer will report actual fiscal fourth-quarter and year-end results on Oct. 8.
In a statement, Richard Galanti, chief financial officer, said that factors affecting earnings include “a significantly greater-than-anticipated LIFO charge; an anticipated negative swing in year-over-year profitability in our gasoline operations; and slightly lower-than-planned merchandise profits related to holding selling price points to help drive sales and maintain the confidence of our members.”
He added that its comparable sales results “remain strong relative to other retailers and we believe our growth outlook remains positive,” with 20 to 25 new stores planned for fiscal 2009.