Costco November Same-store Sales Rise

Posted 30 November 2006 @ 01:51 pm EET     Print     Reprint     E-Mail     Comments

CHICAGO (Reuters) - Costco Wholesale Corp. on Thursday said November sales rose 5 percent at stores open at least a year, shy of Wall Street expectations, held back by falling prices for gasoline sold at its filling stations.

Analysts on average had expected the largest U.S. warehouse club operator to post a same-store sales increase of 6 percent, according to estimates gathered by Reuters. Total sales for the four weeks ended on November 26 rose 9 percent to $4.45 billion.

Investors are watching November sales reports particularly closely for clues on holiday spending trends after Wal-Mart Stores Inc. gave a surprisingly weak preliminary sales figure on Saturday. Wal-Mart and other major retailers will release final sales reports later on Thursday.

On a recording detailing its November sales performance, Costco said the average price per gallon of gasoline it sold was $2.20 in November, down from $2.28 a year earlier. The retailer also noted weak demand in its media and housewares departments. Food, candy, deli and big-ticket items such as televisions sold well.

International same-store sales were up 10 percent, well ahead of the 4 percent gain at the U.S. stores. Costco said Korea and Japan were its strongest markets, and foreign exchange rates helped lift its reported sales.