Costco Profit Rises 24% in Fiscal 1st Quarter

Costco Wholesale Corp. said profit from operations jumped 24% in its fiscal first quarter to $129.3 million, or 56 cents a share, a penny better than estimates, on healthy sales gains. The retailer also said it will split its shares 2-for-1 on Jan. 13. Costco’s profit got a boost from a 13% jump in sales at stores open at least a year as it sold more VCRs, personal computers, fresh food and jewelry. Total sales at its 302 warehouse stores grew 16% to $6.82 billion, with increases in all major categories, including a 37% rise at its pharmacy, optical and gas station operations. Revenue, including membership fees, was also up 16%, to $6.94 billion. The Issaquah, Wash.-based company said it plans to open 15 to 20 stores this fiscal year. Costco shares fell 25 cents to close at $91.94 on Nasdaq.