Costco Wholesale Corp investors shrugged off a weaker-than-expected 1.3 percent rise in quarterly profit as the warehouse chain announced plans to open 36 new clubs this fiscal year, including its first two locations in Spain.
Costco shares, which trade at a premium to many other mainstream retailers, were more than 2 percent higher on the Nasdaq at $114.70 at midday on Wednesday after closing at $112.21 on Tuesday.
Discount chain Family Dollar Stores Inc said it was taking a cautious approach to 2014 as its shoppers focused on basics. Its sales missed expectations and it relied on cost cutting to deliver a better-than-expected profit. Family Dollar shares were down 2.3 percent to $67.81.
Costco and Family Dollar typically cater to different shoppers. Costco's U.S. household and business members pay fees of up to $110 per year to shop at its clubs and online. Family Dollar says that more than half of its customers are on some form of government assistance.
To read the rest of the story, please go to: Reuters