Costco 3rd Quarter Sales Climb; Income Drops

May 30, 2007  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on May 2007 Costco posted net sales of $14.34 billion for the third quarter ended May 13, up 10 percent from $13.01 billion during the third quarter of last year.

Sales for the quarter were reduced by $228.2 million due to an increase in the sales returns reserve balance.

Net income for the quarter was $224 million, a decline from the $235.6 million posted during the third quarter of 2006. Included in this quarter’s results is a $48.1 million pre-tax charge reflecting reduced gross margin on estimated future returns recorded in the increased sales return reserve.

Net sales for the three quarters were $43 billion, up from $39.47 billion posted in the first three quarters of 2006. Net income for the 36-week period was $710.4 million, compared to $747.6 million during the same period in 2006.