Retailer Costco Wholesale Corp posted a 39 percent increase in quarterly profit, beating expectations, on increasing sales, membership fees and a tax benefit related to a special cash dividend.Members pay up to $110 per year to shop at Costco's cavernous stores and website, which sell everything from dog food to diamond rings. The fee revenue pads Costco's bottom line, allowing it to offer low prices and take in thin profit margins on items it sells.Net income was $547 million, or $1.24 per share in the fiscal second quarter ended on Feb. 17, compared with a profit of $394 million, or 90 cents a share, a year ago.Costco said net income was positively impacted by a $62 million, or 14 cents per share, tax benefit in connection with the portion of the special cash dividend it paid in Dec. 2012 to 401(k) pension plan participants.
Costco Wholesale Corporation (Costco) with its subsidiaries is engaged in the operation of membership warehouses in the United States and Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Australia, and through majority owned subsidiaries in Taiwan and Korea. Shares of COST remained unchanged at $102.44. In the past year, the shares have traded as low as $81.98 and as high as $105.97. On average, 2181070 shares of COST exchange hands on a given day and today's volume is recorded at 0.
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