Costco Shares Fall as Accelerating Sales Fail to Boost Margin
- Retailer has invested in boosting e-commerce capabilities
- Stock declines in late trading before paring some of loss
This article is for subscribers only.
While sales at Costco Wholesale Corp. remain strong, investors may be concerned that profitability is taking a hit.
The shares fell as much as 3.5 percent in late trading Thursday after a quarterly report showed gross margin shrinking from a year earlier -- a sign that higher sales aren’t translating into more cash for shareholders. Shares later pared some of the decline.