Costco Wholesale Corporation is seeing strong growth in sales, which helped the company’s third-quarter profit to increase 7 percent.
The company also shared good news for its employees on Thursday, Costco is planning to use some of the savings that it got as a result of the tax cuts to increase the salary of its employees. The raise will go into effect on June 11, the company will raise the hourly wages to $14 or $14.50. Other store chains also announced about raises to their employees because of the high demand of retail workers in the food industry.
The spokesperson for the company told that the company earned $750 million, or $1.70 per share, during the third quarter. That is an increase from $700 million, or $1.59 per share, from 2017’s third-quarter. The profits exceeded Wall Street predictions. The 12 analysts surveyed by Zacks Investment Research predicted earnings of $1.68 on each share.
The Issaquah, Washington-based company said revenue grew 12 percent to $32.36 billion in the period, also smashing Wall Street predictions. The Wall Street predicted $31.77 billion.
The company said its comparable sales, which do not include the impact from newly-opened stores, saw an increase of 10.2 percent overall with relatively less growth in the United States’ stores of 9.7 percent. Costco’s has 750 stores around the globe, of which 520 are located in the United States. In these 520 stores, the company has employed 130,000 U.S. workers.
This move is aimed as a means to spread the benefits of the tax cuts to the workers but not everyone at the company is happy. Many people working at the company are feeling left out. One employee, who demanded anonymity said: ‘I would make a considerable amount more going back and gathering carts for the warehouse in the parking lot.’
90 percent of Costco employees are working on hourly wages and earn a median of $22.50 an hour.