Costco hit by weak overseas sales

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Discount US retailer Costco Wholesale has reported a slight rise in quarterly profits after rising sales in its home market offset falls overseas.

Reporting its results for the three months to 23 November, Costco's net income rose just 0.2% to $262.5m (Â£176m) from $262m a year earlier.

Like-for-like sales, which pull out new store openings, rose 3% in the US, but declined 7% overseas.

Costco has outlets in Canada, Japan, Korea, Taiwan, Mexico and the UK.

'Cutting back'

Its quarterly net sales were up 4% to $16.04bn from $15.47bn a year earlier.

Costco said customers were cutting back on all but the most essential household items.

It added that US sales were lifted by a strong performance by its petrol stations.

Costco is a club-based company, and would-be customers are required to pay to join up as members.