ISSAQUAH, Wash. — Costco Wholesale Corp. here said yesterday the weak economic environment, higher employee benefit costs and weaker foreign exchange rates combined to negatively impact financial results for the fourth quarter and fiscal year ended Aug. 30.
For the 16-week fourth quarter, net income fell 6% to $374 million, while total revenues, including membership fees, dropped 3.3% to $21.9 billion and comparable-store sales dropped 6% in the U.S. and 5% overall.
For the year, net income declined 15.4% to $1.1 billion, while total revenues fell 1.5% to $69.9 billion and comps were down 2% in the U.S. and 4% overall.
Richard Galanti, executive vice president and chief financial officer, said September comps exceeded fourth-quarter results. The company said financial results this year benefited from a LIFO credit of $11 million after taxes, while results for the prior year include a $21 million pre-LIFO charge and a $10 million charge related to a litigation settlement.
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