Costco Wholesale - the biggest US warehouse-club chain, and the world's largest retailer of fine wine said fiscal second-quarter profit surged 25 per cent, helped by gasoline price inflation and favorable currency movements.

Net profit of Washington-based, largest membership warehouse club chain rose to $299 million, or 67 cents a share, for the quarter ended February 14, from $239 million, or 55 cents, a year ago. Total sales for aforesaid quarter also climbed 11 per cent to $18.7 billion. Shares of Costco closed 1.14 per cent down to $60.68

The underlying club membership which is an indicator of upcoming sales remained strong as collections grew nearly 8.7 per cent, with fees unchanged, compared to 5.4 per cent in the first quarter. Same-sales store sales rose 9 per cent. For the US, the figure was 5 per cent, and a smart 26 per cent rise at overseas stores.

Richard Galanti, CFO, said that sales of basic necessities were steady and there was a modest growth in discretionary items, as people crawl back from more than a two year long recession.