Sales up, profits down at Costco

ISSAQUAH, WA — With costs climbing higher and margins trailing, third-quarter profits fell by 11.5 percent at Costco Wholesale Corp., to $105.3 million from $120.3 million last year, even though sales climbed at a double-digit pace.

Sales at the warehouse club operator advanced by 11.7 percent, to $7.6 billion from $6.7 billion. Same-store sales improved by an impressive 5 percent. Costco said revenues from membership fees shot up by 23.2 percent, to $155.4 million from $126.0 million.

However, average gross margin tightened by 30 basis points, to 9.8 percent from 10.1 percent a year ago. And expenses climbed by 40 basis points, to 9.3 percent from 8.9 percent. Despite the big improvement in sales, operating profits dropped by 12.1 percent, to $174.7 million from $198.7 million.

For the nine months year to date, profits were off by 4.6 percent, to $411.4 million from $431.3 million, even though sales moved up by 9.5 percent, to $23.2 billion from $21.2 billion, adding more than two billion dollars to the top line.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT Cover October 2017

See the October 2017 issue of Home & Textiles Today. In this issue, we look at the Top 25 Online Retailers.  H&TT's exclusive annual ranking of the biggest online sellers of home textiles finds that while pure play etailers continue to fly, bricks & clicks are digging into omnichannel. See details!