86
Fashion Jobs
SHISEIDO
K-Key Account Lead
Permanent · HO CHI MINH CITY
ADIDAS
Senior Director Product Creation Ftw
Permanent · HO CHI MINH CITY
L'OREAL GROUP
Corporate Affairs & Reputation Manager - Corporate Affairs & Engagement
Permanent · HO CHI MINH CITY
JO MALONE LONDON
Education Manager, Jml/lm
Permanent · HO CHI MINH CITY
L'OREAL GROUP
Senior HR Operations Executive/ Assistant Manager
Permanent · HO CHI MINH CITY
ADIDAS
Key Account Manager (Franchise)
Permanent · HO CHI MINH CITY
ADIDAS
Senior Manager, Commercial, Adigolf, Vietnam 1
Permanent · HO CHI MINH CITY
ADIDAS
Key Account Manager 1 (Franchise)
Permanent · HO CHI MINH CITY
COLUMBIA
lo Costing & Engineering Manager
Permanent · HO CHI MINH CITY
L'OREAL GROUP
Category Manager - Cpd
Permanent · HO CHI MINH CITY
L'OREAL GROUP
Business Planning Manager - Cpd
Permanent · HO CHI MINH CITY
ADIDAS
Senior Manager Product Creation (Sportwear)
Permanent · HO CHI MINH CITY
L'OREAL GROUP
Product Manager - Shu Uemura
Permanent · HO CHI MINH CITY
ADIDAS
Manager, Quality Product Integrity
Permanent · HO CHI MINH CITY
TAPESTRY
Manager, Manufacturing Engineer
Permanent · HO CHI MINH CITY
SPECIALIZED
Painting Quality Engineer - Bình Dương, Vietnam
Permanent ·
ON RUNNING
Social Compliance Specialist - Hcm Based
Permanent · HO CHI MINH CITY
ADIDAS
Senior Manager, Sourcing Operations
Permanent · HO CHI MINH CITY
WILLIAMS SONOMA
Wood Sustainability Specialist - (Global)
Permanent · THUẬN AN
PUMA
Manager Quality Apparel & Accessories
Permanent · HO CHI MINH CITY
PUMA
Senior Executive, Finance
Permanent · HO CHI MINH CITY
PUMA
Head of Quality Footwear
Permanent · HO CHI MINH CITY
By
Reuters
Published
Oct 6, 2017
Reading time
2 minutes
Download
Download the article
Print
Text size

Shrinking margins cloud Costco's profit beat, shares fall

By
Reuters
Published
Oct 6, 2017

Costco Wholesale Corp’s quarterly profit scraped past estimates, helped by a hike in membership fees, but a fall in gross margins fueled concerns of an intensifying grocer price war, sending shares down 3.6 percent in after-market trading.

Investors are wary that Costco’s business model, which mainly generates revenue through a niche membership club, faces increased competition from online giant Amazon.com Inc, which has begun to shake up the grocery space with its acquisition of Whole Foods.


A Costco truck makes a delivery to a Costco store in Carlsbad, California - Reuters - Reuters


Gross margins in the fourth quarter were lower year-over-year by 15 basis points, as the retailer spends to drive sales and member loyalty, Costco said on a post-earnings conference call on Thursday.

“We believe near-term sentiment and fear of the long-term impact of Amazon on Costco’s business could continue to create an overhang on COST shares and limit valuation upside,” BMO Capital Markets analysts said in a pre-earnings client note.

Costco’s shares have fallen 7.2 percent since the Amazon-Whole Foods deal was announced in June.

MEMBERSHIP FEE HIKE

Costco implemented its annual membership fee increase by $5-$60 for Goldstar and business members, and by $10-$120 for executive memberships in the quarter.

Membership fees, which accounted for about 72 percent of Costco’s operating income in 2016, rose 13 percent in the 17-week fourth quarter ended Sept. 3.

Excluding the impact of fuel and currency fluctuations, total comp sales rose 5.7 percent, while analysts at research firm Consensus Metrix expected an increase of 5.1 percent.

Costco’s U.S. comp sales rose 5.8 percent in the quarter.

Net income attributable to Costco rose to $919 million, or $2.08 per share, from $779 million, or $1.77 per share.

Total revenue rose 15.7 percent to $42.30 billion.

Analysts on average had estimated earnings of $2.02 per share and revenue of $41.55 billion, according to Thomson Reuters.

© Thomson Reuters 2024 All rights reserved.