Costco earnings top expectations as supply concerns continue

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Costco Wholesale reported quarterly revenue and profit topped Wall Street expectations as consumers purchased more groceries and splurged on high-margin items.

Comparable sales, excluding the impact of fuel and currency fluctuations, jumped 11.1% in the second quarter, compared with Refinitiv IBES estimates of an 8.74% rise.COVID-19 disruptions"Overall, we've done a pretty good job of giving the supply chain challenges. I think that's evidenced in our sales strength," said Chief Financial Officer Richard Galanti. "They continue to be delayed to container arrivals, so we continue to advance order in many cases as we are able to.

"One of the things that we've done that I mentioned last quarter, I mentioned we had chartered three small container vessels to help provide us with additional flexibility on shipping," said Galanti. "We have now charged a total of seven ocean vessels, up from those three – for the next three years. And these are the transport 'containers between Asia and the U.S. and Canada.

 

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