Corrected: Costco fourth-quarter profit rises 6.8 pct

(Reuters) - Discount retailer Costco Wholesale Corp reported higher quarterly profit on Wednesday as price-conscious shoppers headed to its warehouse locations for bargains.

Costco said net income was $397.8 million, or 90 cents per share, for the fiscal fourth quarter ended Aug 31, compared with $372.4 million, or 83 cents per share, a year earlier.

Analysts, on average, had expected earnings of 93 cents per share, according to Reuters Estimates.

Net sales in the quarter rose 13 percent to $22.6 billion, excluding membership fees, which rose to $473.7 million from $388.2 million, the Issaquah, Washington-based company said.

The retailer said sales in September at clubs open at least a year rose 7 percent. Analysts, on average, were expecting same-store sales to rise 7.5 percent.

Customers pay an annual fee to shop in Costco's warehouse clubs, which sell everything from discounted televisions and fresh fruit to bulk-sized packages of soda and paper towels. Costco also operates gasoline stations at many of its locations, typically offering prices cheaper than those of local competitors.

Costco and its rivals such as Wal-Mart Stores Inc's Sam's Club and BJ's Wholesale Club Inc have emerged as relatively bright spots in the struggling U.S. retail sector, as cash-strapped shoppers, worried about the weakening U.S. economy, increasingly seek out deals in the clubs.

(Reporting by Savio D'Souza in Bangalore; Editing by Quentin Bryar)

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