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Costco quarterly sales miss estimates amid fierce competition



<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "(Reuters) – Costco Wholesale Corp reported quarterly revenue below Wall Street estimates on Thursday, as the US hypermarket chain struggled to attract shoppers in the competitive grocery space. " data-reactid = "22"> (Reuters) – Costco Wholesale Corp reported quarterly revenue below Wall Street estimates on Thursday as the US hypermarket chain struggled to attract buyers in the competing grocery store.

<p class = "canvas atom canvas text Mb (1

.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Costco and other US grocers are slashing prices while investing heavily in stores and online operations to defend their share of the market as Amazon.com Inc and Walmart expand aggressively. " data-reactid = "23"> Costco and other US merchants are splashing prices while investing heavily in stores and online businesses to defend their share of the market as Amazon.com Inc and Walmart expand aggressively.

The only retailer that is a member country only expands internationally and opens its first warehouse in China two months ago, where overcrowding and traffic jams in the neighborhood forced the retailer to limit the number of shoppers in the store.

Costco had registered membership sign-ups in Shanghai, aided in part by its presence on social media, with over 20,000 registered members, CFO Richard Galanti told analysts on a post-earnings call.

The company said it plans to open its second Shanghai store in 2021.

Cos tcos entry into China came amid trade tensions between Beijing and Washington that have burdened US companies with additional duties on Chinese imports of footwear, whiskey to TV .

"We work with suppliers on a daily basis. We have gone to virtually every supplier on each item to see what we can do to both reduce costs and find out how we are doing. In some cases, we have reduced our commitments to certain goods, "said Galanti.

Shares in the Issaquah, Washington-based company, which has risen more than 40% so far this year, fell nearly 2% in expanded trading after missing comparable store estimates for the reported quarter.

Sales of comparable stores, or those registered on Costco's e-commerce platform and warehouses for more than a year, rose 5.1%, excluding the effect of fuel and currency fluctuations Analysts estimated a 5.25% increase, according to IBES data from Refinitive.

In the United States, comparable store sales, excluding fuel, increased 5.2% and also lacked the estimate of 5.32%.

The company's total sales increased around 7% to $ 47.50 billion aided by sales of major ticket items such as diamond rings and Kitchen Aid mixers, but fell below estimates of $ 47.57 billion.

Excluding disposable items, Issaquah, Washington-based company earned $ 2.69 per share, $ 15 above expectations. [19659013] (Reporting by Nivedita Balu in Bengaluru; Editing Shailesh Cubes)


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