UPDATE: Costco Q1 Profit Tops Expectations

Costco Wholesale COST reported a better-than-expected profit for the first quarter. The Issaquah, Washington-based company posted a quarterly profit of $496 million, or $1.12 per share, versus a year-ago profit of $425 million, or $0.96 per share. Its net sales rose 7% to $26.28 billion from $24.47 billion, while total revenue climbed 7% to $26.87 billion. However, analysts were estimating a profit of $1.09 per share on revenue of $26.92 billion. Costco's same-store sales, excluding negative impacts from gasoline price deflation and foreign exchange, climbed 7% in the quarter. In the US, same-store sales, excluding fuel, climbed 7%. Its revenue from membership fees gained 6% to $582 million, while its merchandise costs jumped 7% to $23.39 billion. Costco currently operates 671 warehouses, including 474 in the United States and Puerto Rico. Costco shares gained 1.03% to $144.52 in pre-market trading.