Costco Q3 income tops forecasts

Costco Wholesale Corp. exceeded Wall Street expectations with improved net earnings in the third quarter of fiscal 2016.



Net income for the quarter totaled a better-than-expected $545 million, up 6% from $516 million the prior-year period.



Net sales increased 2% to $26.15 billion, just short of forecasts, and up from $25.52 billion last year.



Total company same-store sales remained flat, which included flat results in the U.S., 1% growth in Canada and a 2% decline in international stores. Gasoline price deflation and foreign currency exchange had a significant negative impact on overall same-store sales.



Costco currently operates 705 warehouses, including 493 in the U.S. and Puerto Rico, 90 in Canada, 36 in Mexico, and 86 internationally.