Costco Profits Drop in Third Quarter

Costco saw both good news and bad news in their third quarter report. The good news is that many consumers are looking at membership clubs such as Costco to try to save money during the current national economic slowdown. With a healthy number of members, Costco’s long-term health looks solid.

The bad news is that Costco saw their profits fall in the third quarter. Last year, Costco had a third quarter profit of $295.1 million. Costco’s third quarter profits this year fell to $209.6 million. Revenue also fell — from $16.6 billion to $15.8 billion.

Apparently, investors weren’t too thrilled with the third quarter report. After the release of the report, Costco saw its stock drop about 2%.

To help jumpstart their profits, Costco is making a number of moves, including adding a few payment options. Recently, it was announced that Costco would start accepting food stamps.

Costco (Image: Flicr)