New York, Oct 8 - Costco Wholesale Corp reported a higher quarterly profit on Wednesday as price-conscious shoppers headed to the discount retailer's warehouse locations for bargains on food and gasoline.
Costco said net income was $397.8 million, or 90 cents per share, for the fiscal fourth quarter that ended Aug. 31, compared with $372.4 million, or 83 cents per share, a year earlier.
The latest quarter's results included a charge of 5 cents per share related to inventory and a charge of 2 cents per share for a litigation settlement.
Excluding the litigation charge, Costco earned 92 cents per share, which compares with analysts' average estimate of 93 cents a share, according to Reuters Estimates.
Net sales in the quarter rose 13 percent to $22.6 billion, excluding membership fees, which rose to $473.7 million from $388.2 million, the Issaquah, Washington-based company said.
Customers pay an annual fee to shop in Costco's warehouse clubs, which sell everything from televisions and fresh fruit to bulk-sized packages of beverages and paper towels.
Costco also operates gasoline stations at many of its locations, typically offering prices cheaper than those of local competitors.
Costco and its rivals such as Wal-Mart Stores Inc's Sam's Club and BJ's Wholesale Club Inc have emerged as relatively bright spots in the struggling U.S. retail sector, as cash-strapped shoppers, worried about the weakening economy, seek out deals in their stores.
But Costco warned in July that its quarterly profit would miss the current Wall Street estimates as soaring energy prices and inflationary pressures drove up the cost of doing business. At the time, analysts on average expected the retailer would earn $1 per share in the quarter.
Costco said in July that while it was paying more for the items it sold in its stores, it was not always immediately marking up prices. The tactic helped spur sales, but hurt margins.
Costco said sales in September at clubs open at least a year rose 7 percent. Analysts, on average, were expecting same-store sales to rise 7.5 percent.
Same-store sales at its U.S. locations increased 8 percent, while international division sales rose 2 percent.
Excluding gasoline price inflation, it said U.S. comparable sales would have been up 6 percent. On a local currency basis, international same-store sales increased 8 percent, it said.