Trending: Costco Long-Term Contracts Insulate It From Spot Shipping Rates

1419 ET -- Costco Wholesale is one of the most mentioned companies in the U.S. across all news items in the past 12 hours, according to Factiva data. Costco's longer-term shipping contracts have helped insulate it from volatility in spot shipping rates ahead of a possible East Coast port strike next week, CEO Ron Vachris tells analysts. Facing a possible disruption, many importers pulled forward shipments, sending last-minute shipping prices higher over the summer, Vachris says. But those rates have already started to come down. If the strike persists, "absolutely it could go up. But from what we're seeing now ... it's coming off at this point," Vachris says. Costco reported fiscal fourth-quarter earnings of $5.29 a share, topping Wall Street estimates of $5.08, and revenue of $79.7 billion slightly missed estimates of $79.9 billion. Same-store sales rose 5.4%, below expectations for an increase of 5.7%. Dow Jones & Co. owns Factiva. (matthew.walker@dowjones.com)

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September 27, 2024 14:34 ET (18:34 GMT)

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