Costco Q2 profit rises, but misses estimates

Costco Wholesale Corp. on Wednesday reported a higher quarterly profit for its holiday quarter, helped by strong overseas growth and increased gasoline prices along with improved sales of discretionary items.

For its fiscal second quarter ended Feb. 14, Costco earned $299 million compared with $239 million a year earlier, which were shy of analysts expectations.

Quarterly sales rose 11% to $18.36 billion, excluding membership fees -- which rose about 9% to $386 million. Same-store sales in the quarter increased 9%.

Costco's same-store sales growth came mostly from its international sales, which climbed 26%. The U.S. figure rose a more modest 5% in the quarter. Removing higher gas prices and the softer dollar, the overseas sales figure climbed 10% while U.S. same-store sales rose 2%.

February same-store sales rose 9%, including the impact of fuel prices and foreign exchange. Costco's same-store sales growth came mostly from its international sales, which climbed 26%. The U.S. figure rose a more modest 5% in the quarter. Removing higher gas prices and the softer dollar, the overseas sales figure climbed 10% while sales at U.S. stores open at least a year rose 2%.