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Costco June same-store sales up

CHICAGO
Thu Jul 12, 2007 7:58am EDT

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A file photo of a Costco employee outside a store. Costco Wholesale Corp. <COST.O> on Thursday reported a 6 percent rise in June sales at stores open at least a year. REUTERS/Handout

CHICAGO (Reuters) - Costco Wholesale Corp (COST.O) reported on Thursday a 6 percent rise in June sales at stores open at least a year, helped by increased sales of televisions, small appliances and other items.

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Analysts, on average, were expecting the warehouse club to report a gain of 5.8 percent, according to a Reuters survey.

Costco, the largest U.S. warehouse club, said net sales in the five weeks ended July 8 rose 10 percent to $6.35 billion.

Costco said its same-store sales rose 5 percent in June domestically and 10 percent internationally.

The weaker dollar added almost one percentage point to the overall same-store sales increase, with the strengthening British pound and Canadian dollar accounting for most of that increase. The weaker U.S. dollar increases the dollar value of sales overseas.

The average transaction at the retailer rose 3.5 percent during the month, Costco said.

Among areas with the strongest sales were computers, televisions, deli, jewelry and frozen foods, the company said in a recorded message.

Tobacco sales were down, due in part to a change in distribution by Imperial Tobacco Group Plc (IMT.L) in Canada and some weakness in U.S. tobacco sales, the company said.

(Reporting by Brad Dorfman, additional reporting by Lilla Zuill)



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