Costco’s switch to Visa is paying off

Costco Wholesale Corp. a better-than-expected quarterly profit, helped partially by lower fees to credit card partner Visa.



Costco, which completed its switch to Visa from American Express during the fourth quarter, said net income rose to $545 million, or $1.24 per share, in the first quarter, ended Nov. 20, from $480 million, or $1.09 per share, in the year-ago period. (The retailer’s profit in the latest quarter included a $51 million gain from a legal settlement.)



Total revenue rose 3.2% to $28.10 billion, slightly below estimates. Same-store sales in the U.S. rose 1%.



Costco currently operates 723 warehouses, including 506 in the United States and Puerto Rico, 94 in Canada, 36 in Mexico, 28 in the United Kingdom, 25 in Japan, 12 in Korea, 12 in Taiwan, eight in Australia and two in Spain.