Costco’s earnings hit by extra expenses from wages, cleaning amid coronavirus pandemic

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Costco’s earnings hit by extra expenses from wages, cleaning amid pandemic

Costco Wholesale Corp. shares fell in the extended session Thursday after the retailer missed Wall Street expectations for its fiscal third quarter, during which it spent nearly $300 million in wages and extra sanitation amid the coronavirus pandemic.

The quarterly profit was impacted by pretax expenses of $283 million, or 47 cents a share, “from incremental wage and sanitation costs related to COVID-19,” the retailer said. Analysts polled by FactSet expected the retailer to report GAAP earnings of $1.96 a share on sales of $37 billion.

 

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So...they’re only going to have profits if 500,000,000 this year (and probably pay no taxes)?

Costco will always find ways to recoup any loss profits 😉

This level of cleaning should have always been occurring a retailers that serve the general public. This will be the new normal and they will figure out how to manage this ongoing.

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