Costco’s Profits Jump On New Credit Card Partnership With Visa
Costco reported strong quarterly earnings this week thanks in large part to healthy sporting goods and electronics sales, and lower fees paid to its new credit card partner, Visa.
The wholesaler’s profits jumped to $779M or $1.77/share in its fiscal fourth quarter, up from the $767M it reported in the same period last year. Earlier this year, Costco entered an exclusive deal with Visa, moving away from using American Express cards for its retail and online channels.
The move, which affected roughly 11.4 million co-branded American Express Costco cards, took place in June and has since helped offset deflation in Costco’s gas and fresh food sales, USAToday reports. Shares rose 4% during early trading Friday to $153.65. [USAToday]