Costco shares fall 9 percent on profit woe

ISSAQUAH, Wash., April 22 (UPI) -- Shares in Costco Wholesale of Issaquah, Washington fell 9 percent Friday morning as it said it will not reach its projected earnings forecast for this year.

The bulk-selling discounter said that higher energy costs would hurt gasoline sales profits in particular. It added that earnings per share were likely to be between 63 cents and 67 cents, below the initial forecast of 70 cents.

"Despite satisfactory sales and membership results, and reasonably good expense control, our gross margins were lower than planned, principally from gasoline sales," said chief financial officer Richard Galanti.