US wholesale retailer Costco has warned that second-quarter earnings will miss analysts forecasts due to its “aggressive pricing”, lower profits from gasoline and a strengthening US dollar.
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The company said today (4 February) that earnings per share for the 12 weeks to 15 February would be “substantially below” an estimate of US$0.70 a share.
“Given the uncertainties surrounding the economy, including consumer behaviour, we will not be providing earnings guidance for the remainder of this fiscal year,” Costco CFO Richard Galanti said.
Comparable-store sales in the four weeks to 1 February fell 2%, as currency fluctuations weighed on Costco’s international sales, which were down 9%.
Stripping out the effect of foreign exchange and falling fuel prices, comparable-store sales were up 5%. Sales outside the US rose 9%.
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