|
Costco 1Q beats estimates
|
 |
December 9, 1999: 11:17 a.m. ET
Warehouse club retailer posts 24% profit increase, announces stock split
|
NEW YORK (CNNfn) - Warehouse club retailer Costco Wholesale Corp. Thursday unveiled a 24-percent increase in its fiscal first-quarter operating profits, beating analysts’ estimates by a penny.
Costco, the largest of the warehouse merchants, also announced a two-for-one stock split, to be paid to shareholders of record on Dec. 24.
Operating profit for the first quarter ended Nov. 21 rose to $129.3 million, or 56 cents a share, from $104.2 million, or 46 cents, a year earlier.
Analysts polled by First Call expected earnings of 55 cents for the quarter.
After a $118 million non-cash accounting charge over its membership benefits, the company posted a net loss of $13.8 million, or 5 cents a share, in the year-earlier quarter.
Sales for the quarter rose 16 percent to $6.82 billion from $5.89 billion a year earlier. Sales at warehouses open at least a year gained 13 percent.
Total revenue for the company, including membership fees, increased to $6.94 billion in the first quarter from $6 billion in the same period a year earlier.
Separately, Costco said its board of directors approved a two-for-one stock split. Shareholders of record as of Dec. 24 will receive one additional share for every share held. The new shares are expected to be issued around Jan. 13.
Costco also unveiled its expansion strategy with plans to open an additional 15 to 20 new warehouses. The plans include relocating four to six of its existing warehouses to bigger and better-located facilities prior to the end of its fiscal year next Sept. 3.
Of the company's 302 locations, Costco currently operates 230 in the United States, 59 in Canada, seven in the United Kingdom, three in Korea, two in Taiwan and a warehouse in Japan. Costco also operates 17 warehouses in Mexico with a joint venture partner.
Costco shares rose 5/8 to 92-13/16 in Thursday mid-morning trade. 
|
|
|
|
|
|
Costco
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
