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Costco Wholesale Corp on Thursday posted a slight rise in first-quarter income and a single-digit rise in sales, amid rising costs.
In the three months ended November 20, the Seattle, Washington-based membership-only wholesaler reported that net sales rose 8.1% to $53.44 billion from $49.42 billion the year prior.
In the US, comparable sales grew 9.3% year-on-year, while in Canada comparable sales grew 2.4% against the prior year. International comparable fell 3.1% year-on-year.
Total revenue rose to $54.43 billion from $50.36 billion as its membership fees grew to $1.0 billion from $946 million.
Its first-quarter net income ticked up to $1.36 billion from $1.32 billion year-on-year, as its diluted earnings per share climbed to $3.07 from $2.98.
Costco explained that the quarter included a $93 million charge related to the downsizing of its charter shipping activities. This was partly offset by a $53 million tax benefit relating to stock-based compensation, however.
The wholesaler reported that its merchandise costs increased to $47.77 billion from $43.95 billion. Its selling, general & administrative expenses climbed to $4.92 billion from $4.72 billion.
Shares in Costco closed down 0.1% at $481.42 on Thursday in New York. In after-hours trading, the stock was down 1.1%.
By Heather Rydings, Alliance News senior economics reporter
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