Originally published at www.seclive.com
Costco Wholesale Corporation (NASDAQ:COST) announced its financial results for the second quarter of fiscal year 2014, posting a decline in earnings from a year ago. Net income fell 15% from $547M and $1.24 per share to $463M and $1.05 per share while sales increased 5.8% to $26.3B. Despite the increase in sales, the company fell short of the $26.7M in revenue and $1.17 earnings per share expected by analysts. Costco cited poor performance in its fresh foods, as well as lagging sales in some nonfood merchandise categories, especially during the holiday season. Same-store sales improved 5% while revenue from membership fees increased by 4.1% to $550M. Analysts believe the company is doing well when compared to others and that its core business remains intact but the results show Costco sales growth slowing when compared to other discount clubs.
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