ISSAQUAH, Wash. - Costco Wholesale Corp. said Thursday that revenue at stores open at least a year increased 7 percent in August, buoyed by higher gas prices and improved international revenue.
This topped the 4.2 percent rise that analysts surveyed by Thomson Reuters expected. But fourth-quarter and full-year revenue missed Wall Street expectations.
The wholesale club operator reported a 6 percent rise in revenue at U.S. stores open at least a year and an 11 percent increase in its overseas locations.
Revenue at stores open at least a year are a key indicator of a retailer's health because they measure results at existing stores rather than new ones.
Taking out the impact of higher gas prices and stronger foreign currencies, August revenue at stores open at least a year gained 5 percent. The U.S. figure rose 5 percent and international results climbed 7 percent.
Total revenue for the four weeks ended Aug. 29 grew 9 percent to $5.9 billion. Fiscal fourth-quarter revenue climbed 8 percent to $23.6 billion, while revenue for the fiscal year improved 9 percent to $76.3 billion.
Analysts polled by Thomson Reuters expected fourth-quarter revenue of $24.23 billion and fiscal-year revenue of $77.98 billion.
Costco Wholesale Corp. said its fourth-quarter revenue at stores open at least a year climbed 6 percent. For the fiscal year, that figure rose 7 percent.
Removing increased gas prices and stronger foreign currencies, fourth-quarter and fiscal year revenue at stores open at least a year both gained 4 percent.
Costco, based in Issaquah, Wash., had 572 warehouses, including 416 in the U.S. and Puerto Rico, 79 in Canada, 22 in the U.K., seven in Korea, six in Taiwan, nine in Japan, one in Australia and 32 in Mexico as of Aug. 29. It plans to open 10 more warehouses during the first four months of fiscal 2011.
