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ISSAQUAH, Wash. - Costco Wholesale Corp. on Wednesday reported that its profit dropped 5.4 percent in the second quarter, even though revenue jumped 7.8 percent.
Costco posted net income of $182.1 million, or 39 cents a share, for the quarter ending Feb. 16, compared with last year's $192.6 million, or 41 cents a share. Total revenue rose to $10.11 billion from $9.38 billion. Same-store sales grew 4 percent.
The company said Wednesday that it booked a charge of $16 million, or 3 cents a share, in the quarter related to an increase in reserves for workers compensation losses.
In a December conference call, CFO Richard Galanti blamed the sluggish economy for Costco's weak outlook and downplayed analysts' concerns that wholesale clubs have saturated the market, The Associated Press reports.
Costco operates 413 warehouses worldwide, 305 in the United States.