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Costco’s Q3 income, earnings beat expectations after 2 tough quarters

BY Marianne Wilson
ISSAQUAH, Wash. — Costco came roaring back in its third quarter as it topped analysts' earnings and sales expectations amid strong U.S. sales. 
 
After missing Street estimates for earnings and revenue in its second quarter, Costco returned to form in its third quarter. The warehouse club giant's net income jumped 28%, to $700 million in the quarter ended May 7. Earnings per share of $1.59 topped analysts' predictions of $1.31 per share. Excluding items, Costco earned $1.40 per share, still more than expected. The company recorded a tax benefit of 19 cents per share related to a special cash dividend announced in April.
 
Net sales rose 8% to a better-than-expected $28.22 billion in the quarter. Total same-store sales rose 5%, with a 6% increase in the United States, also more than anticipated. 
 
Total membership fees collected rose 4%, to $644 million, which was down slightly from the second quarter. Some analysts had expected a bigger lift since the retailer is set to increase its member fee come June 1. 
 
For the six months ending May 7, Costco's net sales were up 5.6% year-over-year to $84.8 billion. The company's half-year diluted earnings came in at $3.99 a share, a 12% increase year-over-year.
 
Costco opened four new locations in the quarter, including its first-ever outpost in Iceland. It ended the period with 732 stores worldwide.

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Report: Walmart’s grocery share growth gains momentum

BY DSN STAFF
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NACDS Foundation sponsors 35th annual March of Dimes Gourmet Gala

BY David Salazar

WASHINGTON — The March of Dimes on Tuesday held its 35th annual Gourmet Gala, which featured the National Association of Chain Drug Stores Foundation as the event’s Title Sponsor.

Both NACDS Foundation president Kathleen Jaeger and NACDS president and CEO and NACDS Foundation chairman Steve Anderson attended the event, with Anderson delivering remarks on how the missions of the March of Dimes and the NACDS Foundation converge — particularly when it comes to efforts aimed at prevention of illness.

“As you know, the March of Dimes improves the health of babies by preventing birth defects, premature birth and infant mortality,” Anderson said. “In our work, we also explore ways to improve patient care so that preventable illnesses can be avoided.

Anderson shared with attendees the foundation’s recent prevention efforts, which have included hepatitis C screenings, as well as research around the illness, which is one of roughly a dozen research projects the foundation has underway. He also highlighted the NACDS Foundation and the March of Dimes’ collaboration in 2016 to prevent Zika virus.

“There's an old-fashioned saying that an ounce of prevention is worth a pound of cure,” Anderson said. “New healthcare challenges are emerging, but that old saying is as true as it has ever been. Tonight, we are proud to join all of you in supporting the March of Dimes in its important work to protect mothers and their babies.”

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