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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
Inside A Costco Wholesale Corp. Location As Earnings Figures Are Released
Photographer: Callaghan O'Hare/Bloomberg

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.