Costco Wholesale (COST), shares were lower on Friday as the bulk retailer reported better than expected fourth quarter earnings.
However they noted pressures in profit margins due a rising inflation cost and shifting consumer preferences.
Costco's diluted earnings for three months ended August 28th were $4.20 per share, an 11.7% increase over last year. This beat Street expectations by about 4 cents.
The total revenues grew 15% to $72.091billion, beating analysts' estimates of $72.07billion. Membership revenues climbed 7.5% to $1.327billion
Costco reported that same store sales increased by 13.7% worldwide and 15.8% in the United States. E-commerce sales rose 7.1%.
Costco noted that gross margins were down by approximately 80 basis points at 10.18%. However, overall inventories were up 26% compared to last year and showed some improvement over
Costco saw inflation at 8% for the fiscal fourth-quarter ended August 28, compared with the previous quarter's 7%+.