ISSAQUAH, WA - Costco reported the results of its first quarter 2019, beginning its fiscal year with mixed results. Though the company managed to achieve robust sales growth—with strong U.S. market performance boosting the company’s net sales to $34.31 billion—it missed revenue expectations.

Highlights from the company’s quarterly report include:

• Net sales for the first quarter were $34.31 billion, an increase of 10.3 percent from $31.12 billion during the first quarter last year
• Net income for the quarter was $767 million, or $1.73 per diluted share, compared to $640 million, or $1.45 per diluted share, last year

Despite posting positive results, the company fell short of analysts expectations, sending Costco's stock tumbling down from $226.51 a share at the end of Thursday to $206.68 by Monday morning.

The company noted in its earnings statement that the company’s 2019 Q1 results benefited from a $59 million ($0.13 per diluted share) tax benefit related to stock-based compensation and a $27 million ($0.06 per diluted share) tax benefit related to implementation of the 2017 Tax Act. And the quarter also included a charge of $43 million ($31 million after-tax, $0.07 per diluted share) for an adjustment to Costco’s estimate of breakage on rewards earned prior to Fiscal Year 2019 for the Citi/Visa co-branded credit card program.

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Costco