Costco Wholesale has said on Wednesday that its earnings increased by an impressive 30 per cent during the quarter till November 25.
The company said that its profits have risen to 93 cents a share in the quarter. The increase is higher than expected as analysts were expecting earnings to rise from 73 cents a share in the same quarter of the previous year to 93 cents a share. The company announced the results after declaring a special dividend of $7 per share.
The company usually released most of the key quarter figures ahead of announcing the results and thus it did nt come as a surprise to the investors. The net sales of the company increased 9.6 per cent while its revenues increased by 14 per cent during the quarter. The total margins 6 basis points compared to the previous year while the fall in gross margins for core merchandise narrowed to just 1 basis point.
Experts say that the company's low-cost model policy is well suited to the customers in the market who are looking to reduce spending and save at a time of a global economic slowdown and continued uncertainty in the global economy.