Costco misses revenue expectations as consumers cut back on discretionary items – National | 24CA News
Costco Wholesale Corp COST.O reported quarterly income on Thursday that missed analysts’ estimates, with shoppers slicing again spending on discretionary gadgets reminiscent of jewellery and electronics towards the backdrop of decades-high inflation.
Retailers Target CorpTGT.N and Dollar Tree IncDLTR.O additionally stated in November that surging inflation and modifications in client spending have been driving down demand for discretionary items reminiscent of toys and electronics.
Costco’s complete income for the primary quarter was $54.44 billion, in contrast with estimates of $54.64 billion, in keeping with Refinitiv IBES knowledge.
However, web revenue attributable to the membership-only retail chain rose to $1.36 billion, or $3.07 per share, within the quarter ended Nov. 20, from $1.32 billion, or $2.98 per share, a 12 months earlier.
The firm’s shares fell about 1% in prolonged buying and selling.
(Reporting by Granth Vanaik in Bengaluru; Editing by Shounak Dasgupta)
