SEATTLE _ Costco shares were falling Thursday afternoon after the warehouse giant fell short of Wall Street expectations for both sales and profits in its second quarter.
The company, headquartered outside Seattle, reported net sales of $29.13 billion and total revenue, including membership fees, of $29.77 billion.
That was up 5.7 percent from the same quarter a year ago. But it fell short of the $29.86 billion Wall Street analysts were expecting, according to a Reuters average estimate.
Earnings per share were $1.17, below the $1.24 of the year-ago quarter, and also below analysts' expectation of $1.36.
Costco shares were down 4.5 percent in after-hours trading after the earnings report was released.
Costco also said that, effective June 1, it will increase its membership fees by $5 for Goldstar (individual), Business, and Business add-on members in the U.S. and Canada.
That means all U.S. and Canada Goldstar, Business and Business add-on members will pay an annual fee of $60.
Annual executive membership fees in the U.S. and Canada will go up from $110 to $120. The maximum annual 2 percent reward associated with the Executive Membership will increase from $750 to $1,000.
A membership fee hike has been expected for some time now.
Costco said in March last year that it was considering raising its membership fees _ something it does every five to six years. The last time the membership fee was increased was January 2012.
