Costco Profits Hold Up But Jewelry Sales Diminish
Diamonds.net, NY
RAPAPORT… Warehouse retailer Costco reported a 31 percent increase in profits to $328 million during its second quarter ending February 17. But the company took a $53 million charge one year ago, helping to boost net income this quarter by 23 percentage points. Sales rose 12 percent to $16.6 billion and same-store sales rose 7 percent.
Company chief financial officer Richard Galanti said consumers notably pulled back spending on diamond jewelry and furniture during the quarter. Sales of food, electronics, and sporting goods rose.
Costco operates 534 stores worldwide with 391 in the United States. Seven new stores were open during second quarter and another 18 are planned to open before August 31, 2008.
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