US warehouse chain Costco Wholesale Crop. Has booked flat first-quarter profits as sales growth slowed.
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Net income increased to $262.5m, up from $262m in the year-ago period, the retailer revealed today (11 December).
Sales growth was hit as the dollar gained against other currencies, eroding international revenue, the company said.
Net sales, excluding membership fees, rose 3.6% to $16bn in the 12 weeks ended 23 November, Costco said in a statement. A year earlier, that revenue grew 12%.
Same-store sales increased 1% during the period, as consumers cut discretionary spending on non-food items.
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By GlobalData“Results were hurt by a slowdown in non-food discretionary sales and related reductions in margins associated with these sales, primarily in the latter half of the quarter,” chief financial officer Richard Galanti said.
Gross margin widened to 10.97% from 10.65% in the year-ago quarter.
