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Costco profit jumps 30 percent

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Staff writer |
Costco Wholesale CorporationCostco Wholesale Corporation announced its operating results for the first quarter of fiscal 2013 and investors can be very happy: reported net income is 30 percent higher compared to the last year.

For thr first twelve weeks of fiscal 2013, ended November 25, 2012, net income for the quarter was $416 million, or $.95 per diluted share, compared to $320 million, or $.73 per diluted share, last year. Last year's net income was negatively impacted by a $12 million charge (or $.03 per diluted share) related to settlement of an income tax audit of the Company's Mexico operation, and a $17 million charge (or $.04 per diluted share) related to contributions to an initiative reforming alcoholic beverage laws in Washington State.

Net sales for the quarter increased ten percent, to $23.20 billion from $21.18 billion during the first quarter last year. Inflation in gasoline prices and strengthening foreign currencies had a positive impact on comparable sales.

On November 28, 2012, the company reported net sales of $8.15 billion for November, an increase of nine percent compared to the similar period last year. The company will pay a special cash dividend of $7.00 per share.

The aggregate amount of payment to be made in connection with that special dividend will be approximately $3 billion. The dividend is payable December 18, 2012, to shareholders of record as of the close of business on December 10, 2012. For the first fiscal quarter of its 2013 fiscal year, from September 3 through November 25, 2012, the Company reported net sales of $23.21 billion, an increase of ten percent from $21.18 billion in Q1 of 2012.

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