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Costco blames sales drop on lower gas prices
Costco Wholesale Corp. reported its first quarterly decline in same store sales since 2009, although profit at the club store did rise.
Same store sales declined 1% in the third quarter ended May 10, including fuel and foreign currency impacts. This was below the 0.7% growth expected by analysts. The company said sales were hurt by low gas prices and a stronger dollar that reduced the value of sales from overseas markets.
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Costco Q3 profit up, sales down
Issaquah, Wash. – Costco Wholesale Corp. reported rising profit in the third quarter of fiscal 2015. But a surging dollar and low gas prices resulted in sluggish sales growth and an unusual same-store sales decline, the company’s first quarterly drop since 2009.
Net income increased 9% to $516 million from $473 million, aided by relatively flat operating expenses.
Total revenue for the quarter, ended May 10, increased 1% to $26.1 million, below Wall Street expectations, from $25.8 million last year.

