Warehouse-club operator Costco Wholesale Corp. (Issaquah, Wash.) announced the company’s fiscal first-quarter profit was nearly flat, a result of consumers pulling back on spending except for necessities such as food.
Profit for the three months ended Nov. 23 rose less than 1 percent to $262.5 million, from $262 million a year earlier. Results include charges of 5 cents per share related to an accounting adjustment stemming from life-insurance contracts and the impairment of corporate investments. Sales at stores open at least one year, also known as same-store sales, rose 1 percent, including a 3 percent rise in the U.S. and a 7 percent decline internationally. The company says international results, mainly in Canada, the U.K. and Korea, were hurt by the stronger dollar.
Costco operates 550 warehouses in the U.S. and Puerto Rico, Canada, the U.K., Korea, Taiwan, Japan and Mexico.