Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) has released its financial results for the first quarter of fiscal 2025, ending November 24, 2024. The results reflect robust growth, driven by strong sales across regions and significant gains in e-commerce.
Financial Highlights
Costco reported a 7.5% increase in net sales, reaching $60.99 billion compared to $56.72 billion during the same period last year. Membership fees also grew, totaling $1.166 billion, up from $1.082 billion in the previous year. Overall, the company’s total revenue for the quarter climbed to $62.15 billion from $57.8 billion.
Net income for the quarter stood at $1.798 billion, or $4.04 per diluted share, compared to $1.589 billion, or $3.58 per diluted share, in the same quarter last year. This year’s results include a $100 million tax benefit ($0.22 per diluted share) related to stock-based compensation, while the prior year included a $44 million tax benefit ($0.10 per diluted share) from the same source.
Comparable Sales Performance
Costco’s comparable sales growth for the first quarter of fiscal 2025 is as follows:
| Region | 12 Weeks | Adjusted* |
|---|---|---|
| U.S. | 5.2% | 7.2% |
| Canada | 5.8% | 6.7% |
| Other International | 4.7% | 7.1% |
| Total Company | 5.2% | 7.1% |
| E-commerce | 13.0% | 13.2% |
*Adjusted figures exclude the impacts of gasoline price fluctuations and foreign exchange rates.
E-commerce continued its strong trajectory, delivering a 13.2% growth rate, slightly higher than the unadjusted figure.
Operational Metrics
As of November 24, 2024, Costco operates 897 warehouses globally. This includes 617 locations in the United States and Puerto Rico, 109 in Canada, 41 in Mexico, 36 in Japan, 29 in the United Kingdom, 19 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, two in France, and one each in Iceland, New Zealand, and Sweden. The company also maintains e-commerce platforms in eight countries, including the U.S., Canada, and the U.K.
Operating Expenses and Income
Costco’s operating income rose to $2.2 billion, up from $1.98 billion last year. Merchandise costs accounted for $54.1 billion, while selling, general, and administrative expenses totaled $5.85 billion, compared to $50.46 billion and $5.36 billion, respectively, in the prior year. Interest income and other net income added $147 million, offset slightly by $37 million in interest expenses.
Cash Flow and Balance Sheet
Costco ended the quarter with $10.91 billion in cash and cash equivalents, an increase from $9.91 billion at the end of fiscal 2024. The company’s total assets stood at $73.39 billion, up from $69.83 billion, reflecting growth in inventories and receivables. Total liabilities increased to $48.93 billion, compared to $46.21 billion in the previous quarter.
Net cash provided by operating activities was $3.26 billion, a decline from $4.65 billion a year earlier, primarily due to changes in working capital. Investing activities used $985 million, mainly for property and equipment additions. Financing activities resulted in a net outflow of $1.19 billion, influenced by cash dividend payments of $515 million and stock repurchases of $207 million.
Conference Call
Costco hosted a conference call to discuss these results on December 12, 2024, at 2:00 p.m. Pacific Time. The webcast of this discussion is available on the company’s investor relations website under “Events & Presentations.”
