Costco Beats Profit Estimates

Costco's online presence helps boost profits.


Costco beat analysts' estimates as the retailer's margins were lifted by a drop in gas prices and a shift to lower-cost sourcing, CNBC reports. Shares were up 5 percent.In addition, pricing pressure on its groceries business has also decreased.

Previously, the company was forced to cut prices and invest in stores and its online presence last year after Amazon entered the grocery market. Costco upped its delivery options in order to better compete with the e-commerce giant and offers same-day shipping with Instacart. CNBC reports that its online comparable-store sales rose 25.5 percent in the second quarter.