Warehouse retailer Costco Wholesale Corporation (COST) warned
Wednesday that its earnings per share for the quarter ending Feb.
15 are likely to come in well below expectations.
The company said current consensus earnings per share by First
Call stands at $0.70. It is due to report earnings for the fiscal
second quarter on March 4.
Chief Financial Officer Richard Galanti said in a statement that
sales and margins have been hurt by general economic
conditions.
"Our margins have also been impacted by aggressive merchandise
pricing in our core merchandise business to drive sales and
increase market share, particularly during the first four weeks of
the fiscal quarter," he said.
Costco has also been hit by lower year-on-year profits from its
gasoline business, and the strengthening U.S. dollar, which ate
into profits from its international operations.
The company said its wholesale same-store sales fell 2% in
January from a year earlier. Same-store sales in the U.S. were flat
in the month while international sales were down 9%.
"Given the uncertainties surrounding the economy, including
consumer behavior, we will not be providing earnings guidance for
the remainder of this fiscal year," Galanti added.
Click here to go to Dow Jones NewsPlus, a web front
page of today's most important business and market news, analysis
and commentary. You can use this link on the day this article is
published and the following day.