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Non-Tech : Costco, slow but sure? -- Ignore unavailable to you. Want to Upgrade?

To: Mel Fox who wrote (890)	5/21/1999 3:45:00 PM
From: Paul K	Read Replies (1) \| Respond to of 1147

Barron's/Negative Article on COST EPS 5/15 Costco Faces Hurdles to Maintain Earnings Pace, Barron's Says Issaquah, Washington, May 15 (Bloomberg) -- Costco Cos., an operator of wholesale warehouse stores, faces some hurdles to meet the historical double-digit earnings growth it's given investors as competition in the discount retail category heats up, Barron's reported. The company, which trades at about 38 times earnings, may not be able to attract enough new U.S. customers to boost sales at stores open at least one year to its recent rates of 8 percent to 9 percent, Chief Executive Jim Sinegal told Barron's. A weakened Canadian currency has hurt the bottom line in Costco's second-largest market, while the company's reliance on profit from big-ticket items such as televisions and premium golf clubs may be a problem if the U.S. economy weakens and consumers pull back on their spending, Barron's said. Berkshire Hathaway Inc. Chairman Warren Buffett said at Berkshire's annual meeting earlier this month that he regretted not owning more shares of Issaquah, Washington-based Costco. (Barron's 5/17 www.barrons.com)