Costco Wholesale Corp (COST.O) on Wednesday missed Wall Street forecasts for quarterly profit and comparable-store sales, as the retailer faced stiff competition from Walmart (WMT.N) and Amazon.com Inc (AMZN.O) in a cut-throat U.S. retail industry.
Comparable-store sales, excluding the impact of fuel and currency changes, rose 5.4 percent in the second quarter ended Feb. 18. Analysts on average had estimated a 5.6 percent increase, according to Thomson Reuters I/B/E/S. [nGNXbLg5lL]
Costco's net income rose to $701 million from $515 million in the prior-year quarter. The company booked a $74 million one-time gain thanks to lower U.S. corporate taxes.
Excluding the gain, Costco earned $1.42 per share, missing analysts' estimates of $1.47.
Total revenue climbed 10.8 percent to $33 billion, edging past expectations of $32.75 billion.
Shares of Issaquah, Washington-based Costco fell slightly in after-hours trading.