[ad_1]
Costco stated that it was striving to address weaknesses in its internal controls.
Photo:
Callaghan O 'Hare / Bloomberg News
Costco wholesale
Corp.
COST -0.65%
evaluates its internal control over its financial reports, a warning that has allowed the retailer's shares to be placed at a lower level after normal trading hours.
The company said in a written statement Thursday that it planned to report a significant weakness in its internal controls, with respect to its computer systems. Costco added that its assessment focused on "user access and program change management domains versus some information technology systems that support the company's financial reporting processes."
On Thursday, Costco said it did not find any anomalies in its financial reports. He added that he was still considering filing his annual financial report with the Securities and Exchange Commission as soon as possible.
The retailer's shares fell nearly 3% in post-market news transactions. Earlier in the day, stocks were down 0.7%, closing at $ 231.68.
Costco is trying to address the material weakness, he added. The company expects this process to be completed by the end of its next fiscal year.
For the quarter ended September 2, Costco's earnings increased by 13% to $ 1.04 billion, or $ 2.36 per share, over the prior year as the retailer relied on the strengthening of its economy. Analysts expect Costco to earn $ 2.36 a share for the quarter, according to FactSet.
The company's total revenue rose 5 percent to $ 44.4 billion, surpassing the $ 44.2 billion expected by analysts, Costco said. The retailer generated net sales of $ 43.4 billion in its 762 warehouses, while membership fees totaled $ 997 million.
Comparable sales growth for the quarter was 9.5%. Analysts expected a gain of 9.1% on this measure.
Write to Micah Maidenberg at [email protected]
Source link
