Costco Wholesale says its fiscal first-quarter profit rose 2.6 percent. Higher costs ate up much of a 12.5 percent increase in revenue.

The wholesale club operator reported on Thursday that its net income rose to USD320 million, or 73 cents per share, for the quarter that ended on 20 Nov. That's up from USD312m, or 71 cents per share, in the same quarter last year.

Costco's revenue rose to USD21.18 billion because of higher gasoline prices and benefits of foreign exchange.