Issaquah, Wash. – Costco Wholesale Corp. increased profit and sales during the first quarter of fiscal 2014 that missed Wall Street expectations hurt by a 5.5% rise in operating expenses, lower gasoline prices, and weak foreign currencies.
Profit rose 2% $425 million, from $416 million a year earlier.
Net sales rose 5% to $24.47, missing estimates of $25.4 million.
U.S. and total company same-store sales increased 3%, while international same-store sales grew 1%. Lower gasoline prices and foreign exchange negatively impacted Costco’s financial performance and were key factors in the company reporting $425 million in net income, rather than the $447.5 million figure expected by Wall Street. In addition, Costco has been offering significant discounts on many items.