Costco (Costco) announced its Q2 financial report on Thursday (2nd), and the results were worse than outside expectations.

(AFP)

[Financial Channel/Comprehensive Report] American retailer Costco (Costco) announced its Q2 financial report on Thursday (2nd), and the results were worse than outside expectations. Costco Chief Financial Officer Richard Galanti attributed this to inflation. Consumer spending on non-essential items slowed down.

After the financial report was announced, Costco fell 2.51% after hours on Thursday, erasing gains during normal trading hours.

Costco's Q2 revenue increased by 6.5% year-on-year to US$55.27 billion (approximately NT$1.706 trillion), lower than analysts' consensus estimate of US$55.54 billion (approximately NT$1.715 trillion).

In the quarter ended February 12, Costco's net profit was US$1.47 billion (approximately NT$45.393 billion) or US$2.92 per share, compared with US$1.3 billion (approximately NT$40.143 billion) or US$3.30 per share in the same period last year. Dollar.

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Costco membership fee revenue rose to US$1.03 billion (approximately NT$31.806 billion) from US$967 million (approximately NT$29.86 billion) in the same period last year.

Costco's annual membership fee is between US$60 and US$120 (approximately NT$1,850 to NT$3,700), which is the main source of Costco's gross profit margin.

Galanti said he had seen some weakness in higher-priced discretionary items, which he added included electronics, jewelry and housewares, which were the worst performers in February and the quarter.

Michael Ashley Schulman, chief investment officer of the US financial services company "Running Point Capital Advisors", said: Costco's Q2 financial report shows that the growth of its merchandise sales may not keep up with inflation and the growth of consumer traffic speed.

Costco rose 1.47 percent to close at $485.69 on Thursday and fell 2.51 percent to $473.49 after hours.

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