Strong quarters for Big Lots and Costco

New York City Both Costco Wholesale Club and Big Lots reported strong profit increases in their most recently completed quarters as consumers, while still on the hunt for bargains, began to move beyond essentials.

At Costco, third-quarter profit rose 46%, helped by continued overseas demand from Canada to Taiwan and by better sales of non-essential products such as apparel and home furnishings.

Net income in the quarter ended May 9 rose to $306 million, up from $210 million in the year-earlier third quarter. Sales rose 12% to $17.39 billion. Same-store sales rose 4%.

At the end of the quarter, Costco ran 568 warehouse clubs, with locations in the United States; Canada; Mexico; the United Kingdom; Korea; Taiwan; Japan; and Australia. The company said it plans to open five more locations by Aug. 29, the end of its fiscal year.

At Big Lots, net income for the three months ending May 1 rose to $55.9 million from $36.2 million last year. The chain raised its 2010 net income outlook.

Revenue rose 8.2% to $1.24 billion, from $1.14 billion last year. Same-store sales were up 6%.