Lower credit card fees boost Costco profit

ISSAQUAH, Wash. ― Costco Wholesale Corp. reported a greater than expected increase of 1.6% in Q4 profits. Lower payments to Visa and growth in consumer spending on home electronics, appliances, and hardware made up for declining grocery prices, according to CFO Richard Galanti. The quarter saw the company move its credit card services to Visa from American Express. Profits of $779 million, or $1.77 per share, exceeded Thomson Reuters analyst expectations of $1.73 on average.