* CFO says still remains cautious
* CEO says no plans to resume issuing financial guidance
*
NEW YORK, Nov 11 (Reuters) - Costco Wholesale Corp (COST.O)
is hoping that consumers are becoming more comfortable making
purchases as the No. 1 U.S. warehouse club operator heads into
the year-end holiday shopping season.
"We still are cautious but are keeping our fingers crossed
that people are buying a little bit," said Chief Financial
Officer Richard Galanti on Wednesday.
He made the comments at the retailer's investor day, which
was being held in its new store in Manhattan.
Costco's monthly same-store sales fell through much of this
year as shoppers shunned purchases of its discretionary
merchandise, like jewelry and clothes. Unlike a year ago, when
gasoline prices rose to record levels, Costco received no
recent sales boost from the price of gas.
But same-store sales returned to positive territory in
September and October, marking an improvement from August, when
same-store sales fell 2 percent. The retailer has also said it
is seeing demand return for products besides food, like
sporting goods, clothes and cameras.
Also speaking at the meeting, CEO Jim Sinegal said the
retailer does not plan to raise prices to boost margins.
Instead, he said Costco will be smarter about the products it
stocks on shelves to reduce costs -- like making round jars
square so that more can fit on a shelf.
He also said the retailer has no plans to resume issuing
earnings forecasts. Costco stopped providing the forecasts in
the past year, saying the climate was too volatile.
Sinegal said that issuing the forecasts is "a terrible
distraction for management."
Costco shares closed up 36 cents, or less than 1 percent,
at $60.40 on the Nasdaq on Wednesday.
(Reporting by Martinne Geller, writing by Nicole Maestri,
editing by Matthew Lewis)
