Costco Wholesale Earnings Miss Forecasts, Membership Fees Increased

Shares of Costco Wholesale Corp. plummeted by more than 4 percent in late trading on Thursday after the company reported fiscal second-quarter results that missed market forecasts.

The retailer posted earnings of $515 million, or $1.17 a share in the three-month period to February, down from $546 million, or $1.24 a share, in the year-ago period. Net sales, however, were reported to advance by 6 percent to $29.13 billion, from $27.57 billion in the same period last year. Although comparable-store sales rose 3 percent last quarter, they still fell short of economists’ forecasts calling for a rise of 3.6 percent.

In addition to the quarterly earnings reports, Costco also announced that it will increase annual membership fees by $5 for U.S. and Canada individual, business, and business add-on members, which is expected to impact around 35 million members.

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