ISSAQUAH, Wash.-Second-quarter net income for Costco increased by 12 percent in its fiscal second quarter to $394 million.
The warehouse-club retailer’s bottom line benefited from a 10 percent gain in net sales for the quarter, which ended on Feb. 12. Net sales totaled $22.5 billion, and included an increase of 8 percent in same-club sales for both its U.S. and international locations. In a conference call to retail industry analysts yesterday, Richard Galanti, Costco’s executive vice president and chief financial officer, said quarterly sales were driven by higher gasoline prices, offset to some extent by weakening in foreign net currencies relative to the U.S. dollar year over year.
Gross margin fell 36 basis points in the quarter, to 12.3 percent. Selling, general and administrative expenses rose 6.8 percent in dollars but fell 29 basis points as a percentage of sales, to 9.5 percent.