ISSAQUAH, Wash.-A hefty gain in total revenue drove Costco’s bottom line to a 16 percent increase in its fiscal second quarter.
Net income for the warehouse-club retailer totaled $348 million in the quarter, which ended Feb. 13. Total revenue, including net sales and membership fees, climbed 11 percent to $20.9 billion. The top line got help from a seven percent increase in same-club sales, which included an impressive gain of 12 percent in comparable clubs posted by the company’s international operations.
An 11 percent increase in merchandise costs slimmed Costco’s gross margin by 166 basis points, to 12.6 percent. Selling, general and administrative expenses rose nine percent in dollars, but fell 23 basis points as a percentage of sales to 9.8 percent.