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Costco reports sales decline in Q2
Costco has reported that net sales declined 1% to USD16.49 billion for the second quarter ended 15 February. Comparable store sales declined by 3% (down 1% in the US and down 11% internationally. Net income amounted to USD239.7 million, compared to USD327.9 million reported in Q2 last year. Costco CFO Richard Galanti said: "Second quarter 2009 earnings results were negatively impacted by a variety of factors, primarily centred on overall weak economic conditions. In particular, our quarterly results were hurt by the continued weakness in non-foods sales and related margins. Margins in foods and non-foods were also negatively affected by increased pre-holiday seasonal markdowns and other selective price reductions to drive sales and increase market share. In addition, results were hurt by lower year-over-year gasoline profits and lower reported international profits, the latter a result of the significant strengthening of the US dollar when compared to the currencies of Canada, the United Kingdom, Korea and Mexico."
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