Costco releases a press release advising that analysts take a downward revision on FY 2008 Q4 earnings, citing higher than forecasted energy costs and lower than anticipated merchandise sales due to price readjustments.
As was the case in the first quarter of 2008, May net sales have increased as a result of increases in gas and foodstuff revenues by 9% from the same month last year. Also, same store sales have increased by 6.9% for the month of May.
Costco reported a 12% increase in quarterly revenue for the first quarter of fiscal 2008 compared with the same quarter of FY07. The company earned $262 million of net profit on $15.8 billion of sales.
Costco Wholesale Corp., reported net income of $372.4 million (83 cents per share) in the fourth quarter compared to $355.6 million (75 cents per share) last year. Revenue also increased from $19.88 billion last year to $20.48 billion. The results exceeded analyst estimates and the stock price increased in the early hours of trading.
Costco reported its same store sales for August, which were below the estimates of analysts. The company announced a two percent increase in its same store sales. However, analysts, such as Bank of America and Wachovia, expected sales growth in the range of 4-5.5 percent.
Costco reported a 6% same store sales rise in March which sent its stock on an upward trend from $54.16 USD to $55.60 USD on April 18th.
Costco announced a new return policy in its California clubs which caused stock price to drop from $57.40 USD to $55.40 USD.
Costco stock price dropped from $49.25 USD to $46.79 when Costco announced that they had lowered 4th Quarter and 2006 year expectations.
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