Costco Beaten Down as Profit Picture Brightens

Costco Wholesale Corporation (NASDAQ: COST) shares fell on reporting better-than-expected profit for its fourth quarter on Thursday.

The bulk shopping giant, headquartered in Issaquah, Washington, announced net sales for the 17-week fourth quarter were $41.36 billion, an increase of 15.8% from $35.73 billion in the 16-week fourth quarter of fiscal 2016. Net sales for the 53-week fiscal year were $126.17 billion, an increase of 8.7% from $116.07 billion in the 52-week fiscal year of 2016.
The Company today also reported net sales of $12.4 billion for September, an increase of 12.1% from $11.06 billion during the similar period last year.
Net income for the 53-week fiscal year was $2.68 billion, or $6.08 per diluted share, compared to $2.35 billion, or $5.33 per diluted share, in the 52-week prior year. Net income was positively impacted by an $82 million ($0.19 per diluted share) tax benefit in connection with the third-quarter special cash dividend and other net benefits of approximately $51 million ($0.07 per diluted share after tax) for nonrecurring net legal and other matters.
Costco ended its 2017 fiscal year with 741 warehouses in operation, including 514 in the United States and Puerto Rico, 97 in Canada, 37 in Mexico, 28 in the United Kingdom, 26 in Japan, 13 in Korea, 13 in Taiwan, nine in Australia, two in Spain, one in France and one in Iceland.
Stock prices for Costco came in at $157.05 midday Friday, down $10.02, or 6%, from Thursday’s close.