Costco Q3 Net Edges Up 3.1 Percent
ISSAQUAH, Wash.-Upbeat sales, on both a total and same-club basis, helped Costco to a 3.1 percent increase in third-quarter net income, to $473 million.
Net sales in the quarter, which ended on May 11, rose 7.1 percent to $25.2 billion, including a companywide 4 percent increase in same-club sales (5 percent for its U.S. clubs). According to a Costco statement, the bottom line also got help from a second-quarter tax benefit of $62 million, in connection with the portion of a special cash dividend paid in December to the company's 401-K plan participants.
Gross margin slipped eight basis points to 12.6 percent. Selling, general and administrative expenses increased 7.5 percent in dollars and four basis points as a percentage of sales, to 9.6 percent.
Along with releasing its third-quarter numbers, Costco also said it plans to open eight new warehouse clubs prior to the end of its fiscal year, Aug. 31.