Costco 4Q Profit Up on Membership Fees

Issaquah, Wash., Costco Wholesale Corp. said its fiscal fourth-quarter profit rose 5% on increased membership fee revenue and higher same-store warehouse sales. Net income for the period ended Sept. 2 rose to $372.4 million compared with $355.6 million in the same period a year earlier.

The latest period's results were hurt by a one-time charge of $35.8 million to increase the company's deferred membership revenue liability. Excluding the charge, earnings were $408.2 million.

Total quarterly revenue grew 3% to $20.48 billion from $19.88 billion, missing Wall Street's estimate of $20.73 billion.

Membership fees increased to $388.2 million from $379.5 million, while same-store warehouse sales climbed 5% from the prior-year period.

For the year, earnings dipped 2% to $1.08 billion compared with $1.1 billion. Excluding the one-time charge and other items, full-year earnings for the current period were $1.2 billion.

Full-year sales rose to $64.4 billion, up 7%, from $60.15 billion in the previous year.