Issaquah based Costco 4Q profits rise, helped by pandemic shopping habits
ISSAQUAH, Wash. (AP) — Warehouse retail chain Costco Wholesale said its fourth-quarter profits rose slightly from a year ago, its profits weighed by wage premiums paid to employees during the pandemic.
In a quarter during which Costco saw a surge of online shopping, the company based in Issaquah, Washington, said it earned $951 million, or $2.14 per share. That’s compared to a profit of $931 million, or $2.10 per share, in the same period a year earlier.
But the results were below analysts’ expectations, pushing the Costco’s stock down about 2% in after-hours trading. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of $2.42 per share in the latest quarter.
Costco said the premium COVID-19 pay for its employees trimmed its profits by 41 cents per share. Costco has been one retailer that has mostly benefited from the pandemic, as stay-at-home Americans stocked up on bulk goods. The company also is seeing a jump in online shopping, notable for the chain mostly known for its mammoth warehouse stores.
E-commerce revenues were up 75% from a year earlier in the quarter that ended Feb. 14.
The warehouse club operator posted total revenue of $44.77 billion in the period, exceeding Street forecasts. Six analysts surveyed by Zacks expected $44.5 billion.