Issaquah, WA, October 7--Costco Wholesale beat analyst expectations for its fiscal fourth quarter profit but missed expectations on sales.
Costco topped fourth quarter, ending Aug. 29, earnings forecasts with a 24 percent rise in net income to $297 million, or 62 cents per diluted share, topping First Call estimates of 58 cents.
The company said revenue rose 11 percent to $14.8 billion, or an 8 percent rise on a comparable basis, which missed an average First Call estimate for sales of $15.1 billion.
Costco blamed new accounting rules on vendor coupon and rebate programs, which have an equal impact on costs and sales, for lowering sales. If the new rules had been effective last year, Costco said sales would have risen 12 percent, or 9 percent on a comparable basis.
It added that comparable sales in the five weeks ending Oct. 3 rose 8 percent. Sales overall rose 11 percent to $4.53 billion.
