Costco quarterly profit misses estimates

Frederic J. Brown | AFP | Getty Images

A Costco store in Alhambra, Calif.

Warehouse club operator Costco Wholesale's quarterly profit fell 15 percent, missing analysts' estimates, hurt by weaker gross margins in its fresh-food business and some non-foods merchandises.

The company's profit fell to $463 million, or $1.05 cents per share, for the 12 weeks ended Feb. 16 from $547 million, or $1.24 per share, a year earlier.

Analysts on average had expected the company to earn $1.17 per share, according to Thomson Reuters I/B/E/S.

Sales rose 6 percent to $25.76 billion, beating the average analyst estimate of $26.65 billion.

( Read more: Eh, don't put too much stock in retail earnings)

Weaker gross margins, particularly during the four-week holiday selling season, and lower international profit due to weakening of foreign exchange rates hurt the results, Richard Galanti, chief financial officer, said.

Costco, which sells everything from carrots to coffins at its cavernous stores, said sales at stores open at least a year rose 3 percent in the quarter.

Excluding fuel and forex, same-store sales rose 5 percent for the 12-week period.

( Read more: Wal-Mart disappoints; food-stamp cuts hurt sales)

Costco has seen steady growth in sales since 2009 due to a continuing increase in its membership base, which saw 4.3 million new members signing up in 2013, according to research firm Trefis.

- By Reuters

Costco Wholesale's profit fell 15 percent, missing estimates, hurt by weaker gross margins in its fresh-food business and some non-foods merchandises.

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