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Thursday, May 27, 2010

Costco's Profit Jumps as Sales Growth Speeds Up

The Globe and Mail

Costco Wholesale Corp. says its profit climbed 46 per cent in the fiscal third quarter as sales and membership revenue both rose.

Costco, the largest wholesale club operator in the U.S., says it earned $306-million, or 68 cents per share. That's up from $210-million, or 48 cents per share, a year ago. Revenue rose 12 per cent to $17.78-billion.

Thomson Reuters says analysts expected 66 cents per share and $17.63-billion in revenue.

The Issaquah, Wash., company says it gained $14-million from a reversal of a tax charge. A year ago it paid $34-million to settle a lawsuit.

Costco says sales at stores open at least a year grew 10 per cent. Excluding higher gas prices and changes in currency exchange rates, those sales rose 4 per cent.