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Costco Wholesale Corporation Reports Third Quarter and Year-To-Date Operating Results for Fiscal 2025

1. Costco's Q3 net sales rose 8% to $61.96 billion. 2. Comparable sales increased across U.S., Canada, and international segments. 3. Net income grew to $1.90 billion, improving diluted EPS to $4.28. 4. Operating income for Q3 increased, reflecting better cost management. 5. Costco operates 905 warehouses, highlighting significant growth and expansion.

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Why Bullish?

Costco's solid revenue growth and increased net income reflect operational strength, similar to past successful quarters that positively influenced stock price.

How important is it?

Strong sales and earnings growth position Costco favorably in the market, directly impacting investor confidence.

Why Short Term?

Immediate investor sentiment may rise post-earnings release, but longer-term trends require monitoring of economic conditions and competition.

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ISSAQUAH, Wash., May 29, 2025 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the third quarter (twelve weeks) and the first 36 weeks of fiscal 2025, ended May 11, 2025. Net sales for the quarter increased 8.0 percent, to $61.96 billion, from $57.39 billion last year. Net sales for the first 36 weeks increased 8.2 percent, to $185.48 billion, from $171.44 billion last year. Comparable sales for the third quarter and first 36 weeks of fiscal 2025 were as follows:  12 Weeks 12 Weeks 36 Weeks 36 Weeks    Adjusted*   Adjusted* U.S.6.6% 7.9% 6.7% 7.9% Canada2.9% 7.8% 4.4% 8.3% Other International3.2% 8.5% 3.2% 8.7%          Total Company5.7% 8.0% 5.9% 8.1%          E-commerce14.8% 15.7% 16.4% 17.2%  *Excluding the impacts from changes in gasoline prices and foreign exchange. Net income for the quarter was $1.90 billion, $4.28 per diluted share, compared to $1.68 billion, $3.78 per diluted share, last year. Net income for the first 36 weeks was $5.49 billion, $12.34 per diluted share, compared to $5.01 billion, $11.27 per diluted share, last year. Costco currently operates 905 warehouses, including 624 in the United States and Puerto Rico, 109 in Canada, 41 in Mexico, 37 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, May 29, 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 Josh Dahmen, 425/313-8254 Andrew Yoon, 425/313-6305   COST-Earn  COSTCO WHOLESALE CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF INCOME(dollars in millions, except per share data) (unaudited) 12 Weeks Ended 36 Weeks Ended May 11, 2025 May 12, 2024 May 11, 2025 May 12, 2024REVENUE       Net sales$61,965  $57,392  $185,480  $171,440 Membership fees 1,240   1,123   3,599   3,316 Total revenue 63,205   58,515   189,079   174,756 OPERATING EXPENSES       Merchandise costs 54,996   51,173   164,849   152,770 Selling, general and administrative 5,679   5,145   17,188   15,743 Operating income 2,530   2,197   7,042   6,243 OTHER INCOME (EXPENSE)       Interest expense (35)  (41)  (108)  (120)Interest income and other, net 85   128   374   504 INCOME BEFORE INCOME TAXES 2,580   2,284   7,308   6,627 Provision for income taxes 677   603   1,819   1,614 NET INCOME$1,903  $1,681  $5,489  $5,013         NET INCOME PER COMMON SHARE:       Basic$4.29  $3.79  $12.36  $11.29 Diluted$4.28  $3.78  $12.34  $11.27         Shares used in calculation (000s):       Basic 443,958   443,892   443,976   443,870 Diluted 444,762   444,828   444,846   444,662   COSTCO WHOLESALE CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(amounts in millions, except par value and share data) (unaudited)Subject to Reclassification May 11, 2025 September 1, 2024ASSETS   CURRENT ASSETS   Cash and cash equivalents$13,836  $9,906 Short-term investments 1,014   1,238 Receivables, net 2,875   2,721 Merchandise inventories 18,606   18,647 Other current assets 1,820   1,734 Total current assets 38,151   34,246 OTHER ASSETS   Property and equipment, net 30,582   29,032 Operating lease right-of-use assets 2,718   2,617 Other long-term assets 4,031   3,936 TOTAL ASSETS$75,482  $69,831 LIABILITIES AND EQUITY   CURRENT LIABILITIES   Accounts payable$19,820  $19,421 Accrued salaries and benefits 4,813   4,794 Accrued member rewards 2,583   2,435 Deferred membership fees 2,931   2,501 Other current liabilities 7,432   6,313 Total current liabilities 37,579   35,464 OTHER LIABILITIES   Long-term debt, excluding current portion 5,717   5,794 Long-term operating lease liabilities 2,463   2,375 Other long-term liabilities 2,598   2,576 TOTAL LIABILITIES 48,357   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; 443,519,000 and 443,126,000 shares issued and outstanding 2   2 Additional paid-in capital 8,148   7,829 Accumulated other comprehensive loss (1,915)  (1,828)Retained earnings 20,890   17,619 TOTAL EQUITY 27,125   23,622 TOTAL LIABILITIES AND EQUITY$75,482  $69,831   COSTCO WHOLESALE CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(amounts in millions) (unaudited)Subject to Reclassification 36 Weeks Ended May 11, 2025 May 12, 2024CASH FLOWS FROM OPERATING ACTIVITIES   Net income$5,489  $5,013 Adjustments to reconcile net income to net cash provided by operating activities:   Depreciation and amortization 1,652   1,531 Non-cash lease expense 208   220 Stock-based compensation 720   686 Other non-cash operating activities, net (15)  (35)Changes in working capital 1,414   966 Net cash provided by operating activities 9,468   8,381 CASH FLOWS FROM INVESTING ACTIVITIES   Purchases of short-term investments (573)  (1,007)Maturities of short-term investments 786   1,441 Additions to property and equipment (3,532)  (3,133)Other investing activities, net (24)  (7)Net cash used in investing activities (3,343)  (2,706)CASH FLOWS FROM FINANCING ACTIVITIES   Repayments of short-term borrowings (635)  (637)Proceeds from short-term borrowings 616   628 Proceeds from issuance of long-term debt —   498 Tax withholdings on stock-based awards (392)  (313)Repurchases of common stock (623)  (484)Cash dividend payments (1,030)  (8,527)Financing lease payments and other financing activities, net (118)  (113)Net cash used in financing activities (2,182)  (8,948)EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (13)  (23)Net change in cash and cash equivalents 3,930   (3,296)CASH AND CASH EQUIVALENTS BEGINNING OF YEAR 9,906   13,700 CASH AND CASH EQUIVALENTS END OF PERIOD$13,836  $10,404  

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