UPDATE 1-Costco misses quarterly revenue estimates as demand weakens

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds details on results, background, shares) March 2 (Reuters) - Costco Wholesale Corp missed Wall Street expectations for quarterly revenue on Thursday, as consumers restrict their spending on discretionary items amid persistently high inflation. Big-box retailers such as Costco are seeing a slowdown in demand for big-ticket discretionary items such as electronics and jewelry, as higher interest rates and surging food prices force consumers to buy more needs-based and affordable goods.


The membership-only retail chain's total revenue for the second quarter was $55.27 billion, compared with estimates of $55.54 billion, according to Refinitiv data. However, net income attributable to Costco rose to $1.47 billion, or $3.30 per share, in the quarter ended Feb. 12, from $1.30 billion, or $2.92 per share, a year earlier. The company's shares fell 1.3% to $477 in extended trading.
(Reporting by Granth Vanaik in Bengaluru; Editing by Krishna Chandra Eluri)

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