Issaquah, WA, December 14, 2006-- Costco Wholesale Corp., the nation's largest wholesale club operator, reported Thursday that its fiscal first-quarter profit rose 10 percent and said it would take a second-quarter charge related to stock option grants.
For the quarter, net income totaled $236.9 million, or 51 cents per share, compared with $215.8 million, or 45 cents per share, a year ago. Revenue climbed 9 percent to $14.15 billion from $12.93 billion last year.
Analysts polled by Thomson Financial were looking for earnings of 50 cents per share on sales of $14.06 billion.
Sales at stores open at least a year, a key industry gauge called same-store sales, rose 4 percent.
In connection with its review of stock option grants, Costco said it will increase the exercise price on certain options granted from 2000 to 2003 and make payments to employees to cover new taxes that may occur. As a result, the company expects a one-time second-quarter charge of $45 million.
