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Costco third-quarter profit hit by COVID-19 expenses

Sales during the pandemic increased in the 12-week period both in Canada and the U.S.

Costco Wholesale on Thursday reported fiscal third-quarter net income of US$838 million, for the 12-week period ending May 10.

The warehouse club operator said its net income was negatively impacted by $283 million pretax from wage increases and sanitation costs related to COVID-19. Last year's reported third quarter net income was $906 million.

Net sales for the quarter increased 7.3%, to $36.45 billion from $33.96 billion last year.

Costco’s comparable sales in Canada for the third quarter decreased 2.5%. Comparable sales–excluding the impact of gasoline sales and foreign currency fluctuations–increased 3%.

Net income for the company in the first 36 weeks was $2.61 billion, compared to $2.56 billion last year. Meanwhile, net sales for the first 36 weeks increased 7.8%, to $110.94 billion from $102.90 billion last year.



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