Reuters is reporting on Costco’s announcement earlier today that it will miss expectations for quarterly earnings because of rising costs. And this is from a company that is trouncing its peers in terms of growth in same store sales (I’m certainly doing my part from shopping there!). In addition to citing tough competition from Wal-Mart’s Sams Club, one of the items also singled out in a conference call held by Costco management was the cost of workmen’s compensation in California where about a third of its workforce is based.
In other news from the zoo formerly known as California, Hustler publisher Larry Flynt will be among our upcoming choices to replace Governor Gray Davis. He apparently wants to put slot machines everywhere to help make up for our budget deficit.