Costco Shares Drop After Disappointing Q4 Sales

Costco Wholesale Corporation COST reported lower than expected sales for the fourth quarter.

The company delivered net sales of $35.7 billion for the fourth quarter compared to $35.0 billion in the previous year quarter representing an increase of 2 percent. However, this is below the Street estimates of $37.19 billion. Its comparable store sales were flat.

For the month of August, Costco reported 2 percent growth in net sales from $8.7 billion to $8.9 billion. Its comparable sales remained flat.

For the full year, net sales grew from $113.7 billion to $116.1 billion and missed the Street predictions of $119.29 billion.

The stock fell $2.14, or 1.32 percent, to $159.95 in the pre-market trading on Thursday.