Costco profits: COST shares fall 2%, despite exceeding fourth-quarter estimates.

Costco on Thursday released financial results for the fourth quarter that exceeded analysts’ forecasts, both on the top and bottom lines. This was due to the fact that consumers stayed at home due to the COVID-19 pandemic, bought more fresh produce, appliances, gardening and sporting goods.

Costco Wholesale (NASDAQ: COST) shares lost 1.57% in after-hours trading after the report.

Costco announced earnings per share of $ 3.13 on revenue of $ 53.38 billion. Analysts surveyed by Investing.com predicted earnings per share of $ 2.83 and revenue of $ 52.04 billion.

“The fourth quarter of this year was negatively impacted by incremental expenses related to COVID-19 premium wages and sanitation costs,” said Costco.

Costco includes the following statement in its fourth-quarter fiscal earnings report.

“The fourth quarter of this year was negatively impacted by incremental expenses related to COVID-19 premium wages and $ 281 million pre-tax ($ 0.47 per diluted share) sanitation costs and a $ pre-tax fee 36 million ($ 0.06 per diluted share) related to the prepayment of $ 1.5 billion of the debt. These items were partially offset by a $ 84 million pre-tax benefit ($ 0.15 per diluted share) for the partial reversal of a $ 123 million pre-tax reserve ($ 0.22 cents per diluted share), related to a product tax assessment made in the fourth quarter of last year. ”

Costco Wholesale Corporation is an American retail company, headquartered in Issaquah, Washington. It was founded in 1983, with the first store in Seattle. Costco is a sales club chain, similar to Sam’s Club