(C) Reuters. The spread of the coronavirus disease (COVID-19) in Pennsylvania
(Reuters) – Costco Wholesale Corp (O:COST) beat estimates for quarterly profit and revenue on Thursday, as consumers staying at home due to the COVID-19 pandemic bought more fresh produce, appliances and gardening and sporting goods.
Traffic at Costco stores also ticked up in the fourth quarter ended Aug. 30, after declining as much as about 20% in April, as government-imposed coronavirus restrictions eased and it brought back food samples.
Revenue from memberships, which range between $60 and $120 per year and account for most of Costco’s gross margin, rose to $1.11 billion from $1.05 billion.
Total revenue rose 12.4% to $53.38 billion, exceeding the average expectation of $52.08 billion, according to IBES data from Refinitiv.
Excluding items, Costco earned $3.04 per share, beating estimates of $2.84 per share.
The company recorded $281 million in COVID-19-related costs as it spent more on employee bonuses and sanitation.
It had earlier projected COVID-19-related costs to exceed $100 million, but had said they would be lower than the $283 million recorded in the third quarter.
Shares of Issaquah, Washington-based Costco, which have gained about 18% this year, were down 2% in extended trading.
Costco beats estimates on pandemic boost
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