Summary
Costco Wholesale Corporation (COST) presents its 2015 10-K filing, detailing a year of steady growth and strategic initiatives. The company continued its expansion by opening 23 net new warehouses, contributing to a 3% increase in net sales to $113.7 billion. This growth was driven by sales at newly opened locations and a 1% rise in comparable warehouse sales, despite headwinds from foreign currency fluctuations and lower gasoline prices. Membership fees, a crucial revenue stream, saw a 4% increase, reflecting strong member loyalty and upgrades to the Executive membership program, which consistently outperforms standard memberships. The company's core strategy of offering high-quality merchandise at low prices, coupled with operational efficiencies and a robust private-label offering (Kirkland Signature), continues to resonate with its expanding customer base. While facing intense competition and general economic uncertainties, Costco's business model remains resilient, supported by a strong balance sheet and consistent cash flow generation, enabling ongoing investments in expansion and shareholder returns.
Financial Highlights
49 data points| Revenue | $116.20B |
| Cost of Revenue | $101.06B |
| Gross Profit | $15.13B |
| SG&A Expenses | $11.45B |
| Operating Income | $3.62B |
| Interest Expense | $124.00M |
| Net Income | $2.38B |
| EPS (Basic) | $5.41 |
| EPS (Diluted) | $5.37 |
| Shares Outstanding (Basic) | 439.45M |
| Shares Outstanding (Diluted) | 442.72M |
Key Highlights
- 1Net sales reached $113.7 billion, a 3% increase year-over-year, primarily driven by new warehouse openings and comparable sales growth.
- 2Membership fee revenue grew by 4% to $2.53 billion, highlighting strong member retention and the appeal of the Executive membership program.
- 3Costco opened 23 net new warehouses in fiscal year 2015, continuing its strategic expansion in both domestic and international markets.
- 4Comparable warehouse sales increased by 1%, with a core comparable sales growth of 7% when excluding the impact of foreign currency changes and gasoline prices.
- 5Gross margin percentage improved by 43 basis points to 11.09%, partly due to gasoline price deflation and positive contributions from ancillary businesses.
- 6Net income increased to $2.38 billion, or $5.37 per diluted share, showing improved profitability over the prior year.
- 7The company initiated a new $4 billion share repurchase program and increased its quarterly cash dividend, demonstrating a commitment to returning capital to shareholders.