US grocery retailer Costco has announced a rise in its quarterly profit but its shares fell after it failed to meet its expectations.

For its first quarter ended on November 21, the company recorded a rise in net income from $160m to $193m, due to higher sales of gasoline.

The company says its final results for the quarter suffered from the damage caused by hurricanes in the south east but it is still confident over plans to open between 23 to 25 new r in 2005.

The company also noted that sales for the first quarter increased by 10% to $11.34bn.