Costco meets 2Q expectations - 2nd quarter earnings report - Brief Article

DSN Retailing Today, March 6, 2001

ISSAQUAH, WASH. -- Costco Corp. reported a slight decline in profits for its second quarter, but generated enough earnings to meet the expectations of analysts.

The 352-store warehouse retailer based in Issaquah, Wash., generated $176.6 million in profits for the second quarter ended Feb. 18, a 3% decline from $181.6 million in the same quarter last year.

But second quarter earnings of 38 cents per share matched analyst expectations, according to research from First Call/Thompson Financial.

Same store sales for the quarter were up 2% from the same period last year, and were up 4% for the first six months of fiscal 2001. Total profits for the six-month period were $306.1 million, a 1.6% decrease from $310.9 million last year.

Total sales for the quarter were up 7% to $8.16 billion, as compared to $7.61 billion the same quarter last year. Costco opened seven new outlets during the second quarter and relocated two warehouses. The chain plans to open an additional 14 to 16 new locations during the next six months.

February sales proved to be stronger than expected, with same store sales increasing 5%, as compared to last year for the four-week period ended March 4. Total sales for the period were $2.45 billion, up 11% from the same period last year.