Costco reported a 14% increase in net sales of $10.3 billion for its first quarter ended Nov. 30 and an 11% jump in same-store sales. Operating income increased by 7% to $254 million and the company posted earnings of 34 cents per share, 3 cents higher than analysts' estimates.

    During a Dec. 9 conference call with analysts, Costco evp and cfo Richard Galanti said the effects of a strike among members of the United Food and Commercial Workers union in Southern California helped increase traffic in stores.

    "More customers have been buying groceries at Costco to avoid picket lines," said Galanti. He estimated that the strike, which began Oct. 11, has generated an additional $60 million to $100 million in sales at Southern California stores and accounted for an extra 1 cent in earnings. The strike involves stores owned by Albertson's, Kroger and Safeway.

    Same store sales in Southern California were up 10% in October and 11% in November compared to 8% in September and fresh food sales increased 20%. The lingering strike is expected to have a positive impact on sales in December and in January if it continues into next year.....You can read more.