BUSINESS

Costco Profit Rises 31 Percent As Shoppers Stock Up On Food

03/28/2008 02:46 am ET | Updated May 25, 2011

Costco Wholesale Corp., the largest U.S. warehouse-club chain, said second-quarter profit rose 31 percent as shoppers stocked up on food to make fewer trips to other stores.

Net income climbed to $327.9 million, or 74 cents a share, matching the Issaquah, Washington-based company's previous outlook. Revenue advanced 12 percent to $16.6 billion, Costco said today in a statement. Sales trailed the average estimate of analysts surveyed by Bloomberg.

By selling in bulk, Costco attracts shoppers seeking to buy more goods with fewer trips to counter higher food and fuel costs as the U.S. economy slows. Customers, who pay annual membership fees, also sought out cut-rate luxury items such as Burberry and Fendi handbags and Omega watches.

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