Costco Tempers Expectations

Aug 05, 2003

By George Anderson

Costco Wholesale now says it expects to earn between 46 cents and 48 cents per share in the fourth quarter, down from its earlier forecast of 54 cents to 56 cents.

The nation’s largest warehouse club operator said sales for the fiscal year would also be off earlier expectations due to higher employee healthcare costs and reduced margins on store sales, reports Reuters.

Moderator’s Comment: Is Costco’s downwardly revised forecast an omen for the rest of the retailing industry? How should the industry deal with rising
healthcare costs and margin pressures?

Costco has tended to be conservative in its projections in the past so missing its numbers here is blip on the screen that bears watching.
Anderson – Moderator

Costco lowers Q4, fiscal 2003 earnings outlook – Reuters

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