Costco misses quarterly sales estimates

Shopping carts are seen at a Costco Wholesale store in Glenview, Illinois, U.S. May 24, 2016. REUTERS/Jim Young/File Photo

(Reuters) – Costco Wholesale Corp (COST.O) on Thursday reported quarterly revenue below Wall Street estimates, as the warehouse club operator cut prices and invested more in its online business to compete with Inc (AMZN.O) and Walmart Inc (WMT.N).

Shares of the company were down nearly 4 percent at $218.49 in extended trade.

Total revenue rose 10.2 percent to $35.07 billion, missing analysts’ average estimate of $35.54 billion, according to IBES data from Refinitiv.

However, sales at established warehouses, excluding the impact of fuel and currency changes, rose 7.5 percent for the first quarter ended Nov. 25, well above estimates of 5.8 percent.

Net income attributable to the company rose to $767 million, or $1.73 per share, from $640 million, or $1.45 per share, a year earlier.

(This story corrects the analysts’ estimates to $35.54 billion in paragraph 3)

Reporting by Nivedita Balu in Bengaluru; Editing by Anil D’Silva

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