Costco Dec. Same-Store Sales Fall 4%

ISSAQUAH, Wash. -- Warehouse club operator Costco(COST Quote) said its same-store sales fell 4% in December, narrowly missing Wall Street's expectations, because of lower gas prices and the negative effect of the stronger U.S. dollar on international sales.

Analysts polled by Thomson Reuters had predicted a 3.7% decline. Costco said same-store sales fell 2% in the U.S. and 11% abroad. However, excluding gas sales, U.S. same-store sales edged up 2% -- better than the 7.8% decline analysts expected. International same-store sales excluding the impact of foreign exchange rose 9%.

Total sales for the five weeks ended Jan. 4 dipped 2% to $7.4 billion. In a recorded statement, Costco said sales of fresh food and consumables were strong, but sales of non-food items remain weak. The company also said severe weather in December dampened results.

Despite the weaker monthly same-store sales results, Costco reported a strong performance in the 2008 fiscal year, as its reported profit rose 19% to $1.28 billion, or $2.89 a share. Full-year revenue rose 13% to $72.5 billion.

The company has benefited during the recent economic downturn as consumers flock to its stores for deals on necessities such as food and gas. For the 18 weeks ended Jan. 4, total sales rose 2% to $24.9 billion, though same-store sales slipped 1%.

Costco currently runs 550 warehouses.