Costco’s Profit Falls 3.2% as Costs Rise
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Costco Wholesale Corp., the biggest U.S. warehouse-club retailer, said fiscal fourth-quarter earnings fell 3.2% because of higher employee-insurance costs and increased competition from Wal-Mart Stores Inc.’s Sam’s Club.
Net income fell to $239.4 million, or 51 cents a share, from $247 million, or 52 cents, a year earlier. Sales rose 11%. Sales at stores open at least a year rose 7%.
Costco boosted its workers’ compensation reserve by more than $11 million, in part because of higher payouts in California.
Shares of Costco fell 41 cents to $32.93 on Nasdaq.
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