Costco Wholesale Corp. stock fell late Thursday after the retailer reported quarterly earnings below Wall Street expectations, due in part to higher wages amid the pandemic.
said it earned $951 million, or $2.14 a share, in the fiscal second quarter, which included a pretax $246 million, or 41 cents a share, in costs mostly related to COVID-19 “premium” wages, it said.
The earnings compared with net income of $931 million, or $2.10 a share, in the year-ago quarter.
Sales rose 14.7% to $43.89 billion, from $38.26 billion a year ago.
Analysts polled by FactSet expected the retailer to earn a GAAP profit of $2.45 a share on sales of $43.75 billion.
Total comparable-sales rose 13%, the company said, with e-commerce sales rising nearly 76%.
February sales, which the company reported alongside quarterly earnings, rose 15% to $14.05 billion.
Shares of Costco have lost around 0.8% in the past 12 months, contrasting with gains around 20% for the S&P 500 index