Boston, MA 05/29/2014 (wallstreetpr) – A chain of biggest warehouse-club store operator, Costco Wholesale Corporation (NASDAQ:COST) announced a profit for the third quarter that witnessed 3.05% uptick over the last year driven by 7% growth in the top line. However, both earnings per share and revenue fell shy of the Wall Street analysts’ expectations.
The company earned a profit of $473 million for the third quarter, up 3.05% from $459 million in the year earlier quarter while earnings advanced 2.88% to $1.07 a share from $1.04 a share in the year-ago quarter. On average, Street analysts predicted Costco Wholesale Corporation to earn $1.09 a share.
Total revenue of the company grew 7.1% to $25.794 billion from $24.083 billion in the previous year quarter. Analysts expected the company to generate revenues of $25.9 billion.
Total comparable store sales recorded 4% uptick during the third quarter and excluding unfavorable impacts from gasoline price and foreign currency, comparable store sales advanced 6%.
Costco Wholesale Corporation’s net sales were $25.23 billion, up 7% from $23.55 billion, while revenue from membership fees grew 5.65% to $561 million from $531 million in the year-ago quarter.
Similarly, Costco Wholesale Corporation (NASDAQ:COST)’s comparable store sales in the U.S. were 5%, while it was 3% from the international division. Excluding gasoline price and currency impact, comparable store sales advanced 6% in the U.S. and 8% in the international division.
Costco Warehouse Corporation’s merchandise costs rose 7.21% to $22.55 billion from $21.04 billion, whereas selling, general and administrative costs grew 7.52% to $2.49 billion from $2.31 billion in the previous year quarter.
As a result of increased financial outgo towards merchandise costs and selling, general and administration in terms of percentage compared to the net sales growth percentage, operating income rose only 2.08% to $737 million from $722 million in the year earlier period.
Costco Wholesale Corporation (NASDAQ:COST) had cash and cash equivalents of $5.74 billion at the end of the third quarter apart from short term investments of $1.54 billion.