Costco: Q3 earnings affected by gas prices, dollar value

ISSAQUAH, Wash. The increase in the value of the dollar and a decrease in gas prices pushed Costco’s global net sales down by 7% for third quarter 2009 and by 3% for all of fiscal 2009, according to an earnings report the mass merchandiser released Thursday.

The retailer said net sales in the United States declined by 5%, to $15.48 billion, from $16.26 billion during third quarter 2008; and by 1% for the first 36 weeks of fiscal 2009, to $48 billion, from $48.35 billion during the same period last year. International sales declined more: 12% for the third quarter and by 10% for the first 36 weeks of fiscal 2009.

When not counting gas price deflation, U.S. sales were flat for the third quarter and increased by 2% for the whole fiscal year. International sales increased by 8% during both periods when not counting foreign exchange rates.

In a statement, Costco CFO Richard Galanti also attributed the sales decline to litigation over membership renewal, higher employee benefits costs and ongoing weakness in sales, particularly of big-ticket items.