Costco Sales Soar

Costco Wholesale Corp., the largest U.S. warehouse-club chain, said April sales at stores open at least a year rose 8 percent as shoppers contending with higher fuel costs sought less expensive clothing and food.

Sales for the four-week period through May 4 increased to $5.54 billion, the Issaquah, Washington-based retailer said today in a Market Wire statement. U.S. same-store sales gained 7 percent in the U.S. and 14 percent at international locations. Seventeen analysts estimated an average gain of 6.2 percent, according to Retail Metrics LLC in Swampscott, Massachusetts.

Consumers are gravitating to Costco and discount retailer Wal-Mart Stores Inc. as they face record U.S. gasoline prices and higher food expenses. Costco's customers, who pay an annual membership fee, also visit for bargains on luxury items such as a 1-ounce bottle of Shalimar perfume for $225.

``They are benefiting from people who are trying to save money,'' said Patricia Edwards, a Seattle-based portfolio manager at Wentworth, Hauser & Violich, with $14.8 billion in assets including Costco shares.

Costco, which runs more than 530 warehouses, fell 88 cents, or 1.2 percent, to $71.20 at 4:30 p.m. in Nasdaq Stock Market composite trading. The retailer has gained 2.1 percent this year, compared with a 3.6 percent decline for the Standard & Poor's 500 Retailing Index.

Same-store sales at U.S. retailers rose 3.6 percent, beating the International Council of Shopping Center's forecast of as much as 2 percent, chief economist Michael Niemira said today in an interview. The New York trade group tracked 35 chains. Warehouse clubs and teen retailers led the gains.

Wal-Mart's Increase

Wal-Mart Stores Inc., the world's largest retailer, said its April same-store sales rose 3.8 percent in the U.S., including a 9.5 percent gain at its Sam's Club warehouse division. Those figures include gasoline sales.

Costco, which also sells gasoline, has benefited from the rising costs of fuel. According to AAA, gasoline averaged $3.62 a gallon on May 6, just below the record and 19 percent more than a year earlier.

Rice has almost doubled in the past year before today on the futures markets, while wheat has surged 67 percent. That's led foodmakers Sara Lee Corp., Kellogg Co. and Kraft Foods Inc. to boost prices.