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COST - Costco Wholesale News Story

$372.5 -2.8  -0.7%

Last Trade - 05/05/21

Sector
Consumer Cyclicals
Size
Large Cap
Market Cap £118.57bn
Enterprise Value £117.73bn
Revenue £128.48bn
Position in Universe 68th / 6849

Refinitiv Newscasts - Pandemic drives up costs for Costco

Sat 6th March, 2021 1:56am
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_3vwogifc&referenceId=tag:reuters.com,2021:newsml_OVE2TAB9N_930&pageId=RefinitivNewscasts
Source: Reuters

Description: Costco Wholesale missed analysts’ estimates for second-quarter
profit on Thursday, as the warehouse club operator spent more on benefits for
employees who worked through the pandemic and sanitized its stores. Fred
Katayama reports.
Short Link: https://refini.tv/2OnYZou

Video Transcript:

Sales surged but so did costs at Costco. The warehouse club operator’s
quarterly profit missed Wall Street’s targets as the retailer spent more
on benefits for employees who worked through the pandemic and sanitized its
stores. Profit margins at American retailers have been squeezed further by
pandemic-related charges. They had already been investing heavily to slash
delivery times amid the surge in online demand from people ordering from home.
Costco doled out premium pay to workers at the onset of the pandemic outbreak
and hiked its minimum wage from March to $16, a dollar more than at Amazon and
Target. Costco, however, performed well on the top line. Revenue rose to
handily beat estimates as online sales jumped nearly 76% from a year earlier.
Costco shares fell in early trading Friday, deepening their 15% loss this
year
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