Costco Cuts Estimates for Rest of Fiscal Year

Costco Wholesale Corp., the biggest U.S. chain of warehouse clubs, reduced earnings estimates for the rest of fiscal 2001 because of lower-than-expected sales and higher energy costs. Costco said it now expects to have profit of 22 cents to 24 cents a share in the quarter ending May 13, down from its March 8 estimate of 25 cents to 27 cents. Analysts on average were expecting 26 cents, according to First Call/Thomson Financial. The Issaquah, Wash.-based chain also cut its fourth-quarter forecast to 39 cents to 41 cents, down from a previous estimate of 43 cents to 45 cents. For the year, Costco expects a profit of $1.26 to $1.30, down from earlier guidance of $1.33 to $1.37 a share. Shares of Costco fell 31 cents to close at $36.24 on Nasdaq before the announcement.