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Shares in global retail group Costco have slipped in the US despite a 12.1% third quarter sales boost as growth fell short of market expectations.

Costco announced net sales for the quarter increased 12.1% to US$31.62bn from US$28.22bn in the corresponding period last year.

Net sales for the first nine months of its financial year are up 12% US$95.02bn.

Total company like for like sales were up 10.2% in the quarter and by 7% without the impact of petrol and currencies.

Like for like sales growth without petrol and currencies was 7.7% in the US, 4.8% in Canada and 5.8% internationally.

Total company like for likes are up 9.7% so far in its financial year and by 6.8% without petrol inflation and currency movements.

Net income for the quarter was $750m or $1.70 per diluted share, compared to $700m or $1.59 per diluted share, last year.

The improvement was partly driven by an $82m tax benefit in connection with the $7.00 per share special cash dividend declared in the third quarter of last year.

Costco currently operates 750 warehouses, including 520 in the United States and Puerto Rico, 98 in Canada, 38 in Mexico, 28 in the United Kingdom, 26 in Japan, 14 in Korea as well as outlets in Taiwan, Australia, Spain, Iceland and France.

Costco shares dropped 2% in after hours trading following the results to $194.23, but remain up 10% year-on-year.

Morning update

This week’s edition of The Grocer has analysis of Asda’s full year results, JAB’s £1.5bn swoop for Pret A Manager and more. See today for the full stories.

On the markets this morning, the FTSE 100 has jumped 0.7% in early trading to 7,730.6pts as fears over political stability in Italy subside.

Early risers include Majestic Wine (WINE), up 1.4% to 427.7p, Britvic (BVIC), up 0.9% to 817p and B&M European Value Retail (BME), up 0.9% to 406.7p.

Fallers so far today include Hotel Chocolat (HOTC), down 2.6% to 375p, McBride (MCB), down 0.9% to 126.8p and British American Tobacco (BATS), down 0.4% to 3,855p.

Yesterday in the City

The FTSE 100 ended the day down 0.15% to 7,678.2pts after a late slide driven by the announcement of US tariffs on a range of goods from the EU, Canada and Mexico.

B&M European Value Retail (BME) continued its strong gains from Thursday after posting better than expected full-year results on Wednesday. The stock rise a further 3.4% to 403p yesterday to add to the 4.5% rise on Wednesday.

Ocado (OCDO) was boosted by its official elevation to the FTSE 100, rising a further 1.2% yesterday to 898p.

Other risers included British American Tobacco (BAT), up 1.6% to 3,869p, Premier Foods (PFD), up 1.8% to 40p and McBride (MCB), up 1.4% to 128p.

Marks & Spencer (MKS) may have survived being ejected from the FTSE 100 by the skin of its teeth, but its shares dropped a further 4.5% yesterday to fall back to 284p.

Other retail fallers yesterday included Majestic Wine (WINE), down 3.7% to 422p, McColl’s (MCLS), down 3% to 230p, SSP Group (SSPG), down 1.8% to 644.9p, Greggs (GRG), down 1.5% to 1,056p and WH Smith (SMWH), down 1.4% to 1,938p.

Also dropping were Dairy Crest (DCG), down 1.7% to 494.6p, Coca-Cola HBC (CCH), down 1.4% to 2,570p and Associated British Food (ABF), down 1.4% to 2,650p.