Inflation Squeezes Costco’s Earnings

Costco Wholesale Corp. yesterday saw its stock plummet more than 12% after it issued a warning that its net income for the current quarter will fall short of expectations, in part due to its effort to keep prices down amid rising product costs.

ISSAQUAH, Wash. — Costco Wholesale Corp. here yesterday saw its stock plummet more than 12% after it issued a warning that its net income for the current quarter will fall short of expectations, in part due to its effort to keep prices down amid rising product costs. Fellow club store operator BJ’s Wholesale seemed to suffer from guilt by association, as the market dragged its shares down about 9%. In a prepared statement yesterday, Costco said earnings for the fourth quarter will be “well be

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