during the earnings call that gross profit margins in e-commerce business are better than they are in the store business. Hence, online segment’s share in Costco’s overall profits is higher that its share in overall revenues (~3%). During the quarter, the retailer’s gross margins ticked up 15 basis points year over year to 10.7%, driven by higher margins in food and sundries, as well as rise in e-commerce profits. This looks quite promising considering that margins have declined steadily for most retailers in the U.S. over the last couple of years.