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Costco Wholesale Corporation Reports Second Quarter and Year-To-Date Operating Results For Fiscal 2025 and February Sales Results

1. Costco reported Q2 net sales of $62.53 billion, up 9.1%. 2. Net income rose to $1,788 million, up from $1,743 million last year. 3. E-commerce sales surged by 20.9% in Q2, highlighting growth opportunity. 4. Operating income increased, reflecting effective cost management strategies. 5. Comparable U.S. sales growth of 8.3% demonstrates strong consumer demand.

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FAQ

Why Very Bullish?

The strong sales and income growth indicates robust operational performance, similar to past high earnings reports which historically improved investor confidence and drove stock price increases.

How important is it?

The article provides significant insights into Costco's earnings, directly affecting stock valuation and investor sentiment.

Why Short Term?

The immediate positive results are likely to drive stock price upward shortly as investor sentiment adjusts quickly to strong financial performance.

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COSTWMTKRTJX
ISSAQUAH, Wash., March 06, 2025 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the second quarter (twelve weeks) and the first 24 weeks of fiscal 2025, ended February 16, 2025. Net sales for the quarter increased 9.1 percent, to $62.53 billion, from $57.33 billion last year. Net sales for the first 24 weeks increased 8.3 percent, to $123.52 billion, from $114.05 billion last year. Comparable sales for the second quarter and first 24 weeks of fiscal 2025 were as follows:  12 Weeks 12 Weeks 24 Weeks 24 Weeks   Adjusted*   Adjusted*U.S.8.3% 8.6% 6.8% 7.9%Canada4.6% 10.5% 5.2% 8.6%Other International1.7% 10.3% 3.2% 8.7%        Total Company6.8% 9.1% 6.0% 8.1%        E-commerce20.9% 22.2% 17.1% 17.9% *Excluding the impacts from changes in gasoline prices and foreign exchange. Net income for the quarter was $1,788 million, $4.02 per diluted share, compared to $1,743 million, $3.92 per diluted share, last year. Last year’s second quarter net income was positively impacted by a $94 million ($0.21 per diluted share) tax benefit due to the deductibility of the $15 per share special dividend to the extent received by 401(k) plan participants. Net income for the first 24 weeks was $3.59 billion, $8.06 per diluted share, compared to $3.33 billion, $7.49 per diluted share, last year. For the four-week reporting month of February, ended March 2, 2025, the Company reported net sales of $19.81 billion, an increase of 8.8 percent from $18.21 billion last year. Net sales for the first 26 weeks were $133.36 billion, an increase of 8.3 percent from $123.15 billion last year. Comparable sales for the February and year-to-date periods ended March 2, 2025, were as follows:  4 Weeks 4 Weeks 26 Weeks 26 Weeks   Adjusted*   Adjusted*U.S.8.6% 8.6% 6.9% 7.9%Canada3.2% 8.7% 5.1% 8.6%Other International-0.6% 6.5% 3.0% 8.7%        Total Company6.5% 8.3% 6.1% 8.1%        E-commerce19.0% 20.2% 16.9% 17.7% *Excluding the impacts from changes in gasoline prices and foreign exchange. Costco currently operates 897 warehouses, including 617 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. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia. A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, March 6, 2025, and is available via a webcast on investor.costco.com (click on “Events & Presentations”). Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. In some cases forward-looking statements can be identified because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, inflation or deflation, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, breaches of security or privacy of member or business information, conditions affecting the acquisition, development, ownership or use of real estate, capital spending, actions of vendors, rising costs associated with employees (generally including health-care costs and wages), workforce interruptions, energy and certain commodities, geopolitical conditions (including tariffs), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to environmental and social matters, public-health related factors, and other risks identified from time to time in the Company’s public statements and reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and the Company does not undertake to update these statements, except as required by law. Comparable sales and comparable sales excluding impacts from changes in gasoline prices and foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with U.S. GAAP. CONTACTS:Costco Wholesale Corporation David Sherwood, 425/313-8239 Josh Dahmen, 425/313-8254 Andrew Yoon, 425/313-6305   COST-Earn COST-Sales COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollars in millions, except per share data) (unaudited)  12 Weeks Ended 24 Weeks Ended February 16, 2025 February 18, 2024 February 16, 2025 February 18, 2024REVENUE       Net sales$62,530  $57,331  $123,515  $114,048 Membership fees 1,193   1,111   2,359   2,193 Total revenue 63,723   58,442   125,874   116,241 OPERATING EXPENSES       Merchandise costs 55,744   51,140   109,853   101,597 Selling, general and administrative 5,663   5,240   11,509   10,598 Operating income 2,316   2,062   4,512   4,046 OTHER INCOME (EXPENSE)       Interest expense (36)  (41)  (73)  (79)Interest income and other, net 142   216   289   376 INCOME BEFORE INCOME TAXES 2,422   2,237   4,728   4,343 Provision for income taxes 634   494   1,142   1,011 NET INCOME$1,788  $1,743  $3,586  $3,332         NET INCOME PER COMMON SHARE:       Basic$4.03  $3.93  $8.08  $7.51 Diluted$4.02  $3.92  $8.06  $7.49         Shares used in calculation (000s):       Basic 443,982   443,892   443,985   443,859 Diluted 444,886   444,754   444,888   444,579          COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS  (amounts in millions, except par value and share data) (unaudited)    Subject to Reclassification        February 16, 2025 September 1, 2024ASSETS   CURRENT ASSETS   Cash and cash equivalents        $12,356  $9,906 Short-term investments         802   1,238 Receivables, net         3,060   2,721 Merchandise inventories         18,754   18,647 Other current assets         1,925   1,734 Total current assets         36,897   34,246 OTHER ASSETS   Property and equipment, net         29,809   29,032 Operating lease right-of-use assets         2,531   2,617 Other long-term assets         3,987   3,936 TOTAL ASSETS        $73,224  $69,831 LIABILITIES AND EQUITY   CURRENT LIABILITIES   Accounts payable        $18,610  $19,421 Accrued salaries and benefits         5,150   4,794 Accrued member rewards         2,491   2,435 Deferred membership fees         2,824   2,501 Other current liabilities         7,924   6,313 Total current liabilities         36,999   35,464 OTHER LIABILITIES   Long-term debt, excluding current portion         5,755   5,794 Long-term operating lease liabilities         2,284   2,375 Other long-term liabilities         2,609   2,576 TOTAL LIABILITIES         47,647   46,209 COMMITMENTS AND CONTINGENCIES   EQUITY   Preferred stock $0.005 par value; 100,000,000 shares authorized; no shares issued and outstanding         —   — Common stock $0.005 par value; 900,000,000 shares authorized; 443,730,000 and 443,126,000 shares issued and outstanding         2   2 Additional paid-in capital         8,047   7,829 Accumulated other comprehensive loss         (2,242)  (1,828)Retained earnings         19,770   17,619 TOTAL EQUITY         25,577   23,622 TOTAL LIABILITIES AND EQUITY        $73,224  $69,831          COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  (amounts in millions) (unaudited) Subject to Reclassification   24 Weeks Ended February 16, 2025 February 18, 2024CASH FLOWS FROM OPERATING ACTIVITIES   Net income$3,586  $3,332 Adjustments to reconcile net income to net cash provided by operating activities:   Depreciation and amortization 1,100   1,015 Non-cash lease expense 137   148 Stock-based compensation 614   580 Other non-cash operating activities, net (79)  (7)Changes in working capital 650   314 Net cash provided by operating activities 6,008   5,382 CASH FLOWS FROM INVESTING ACTIVITIES   Purchases of short-term investments (345)  (719)Maturities of short-term investments 752   1,029 Additions to property and equipment (2,401)  (2,071)Other investing activities, net (13)  9 Net cash used in investing activities (2,007)  (1,752)CASH FLOWS FROM FINANCING ACTIVITIES   Repayments of short-term borrowings (389)  (409)Proceeds from short-term borrowings 370   383 Proceeds from issuance of long-term debt —   498 Tax withholdings on stock-based awards (390)  (292)Repurchases of common stock (412)  (322)Cash dividend payments (515)  (8,012)Financing lease payments and other financing activities, net (98)  (96)Net cash used in financing activities (1,434)  (8,250)EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (117)  15 Net change in cash and cash equivalents 2,450   (4,605)CASH AND CASH EQUIVALENTS BEGINNING OF YEAR 9,906   13,700 CASH AND CASH EQUIVALENTS END OF PERIOD$12,356  $9,095 

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