10-KPeriod: FY2025

COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 31, 2025

Filed October 8, 2025For Securities:COST

Summary

Costco Wholesale Corporation (COST) has reported strong performance for the fiscal year ending August 31, 2025, with net sales increasing by 8% to $269.9 billion. This growth was driven by a 6% increase in comparable sales, reflecting higher shopping frequency and a modest increase in average ticket size. Membership fee revenue also saw a significant 10% jump, boosted by new member acquisitions and fee increases, underscoring the continued loyalty and value proposition for Costco members. The company expanded its physical footprint by opening 24 net new warehouses, contributing to overall sales growth. Despite inflationary pressures impacting merchandise costs, Costco managed to improve its gross margin percentage by 20 basis points, partly due to strong performance in fresh foods and its co-branded credit card program. Net income rose by 10% to $8.1 billion, translating to $18.21 per diluted share. The company also demonstrated a commitment to shareholders through a 12% increase in its quarterly cash dividend.

Financial Highlights

50 data points
Beta

Revenue

$275.24B

12.8% Gross Margin

Net Income

$8.10B

2.9% Net Margin

EPS (Diluted)

$18.21

Total Assets

$77.10B

Cash & Equivalents

$14.16B

Free Cash Flow

$7.84B

Financial Statements
Beta
Revenue$275.24B
Cost of Revenue$239.89B
Gross Profit$35.35B
SG&A Expenses$24.97B
Operating Income$10.38B
Interest Expense$154.00M
Net Income$8.10B
EPS (Basic)$18.24
EPS (Diluted)$18.21
Shares Outstanding (Basic)443.99M
Shares Outstanding (Diluted)444.80M

Key Highlights

  • 1Net sales increased by 8% year-over-year to $269.9 billion, driven by comparable sales growth of 6% and new warehouse openings.
  • 2Membership fee revenue grew by 10%, indicating strong member retention and the success of recent membership fee adjustments.
  • 3The company opened 24 net new warehouses, expanding its global reach and contributing to revenue growth.
  • 4Gross margin percentage improved by 20 basis points to 11.12%, benefiting from strong performance in core merchandise categories and ancillary services.
  • 5Net income saw a robust 10% increase, reaching $8.1 billion, with diluted earnings per share of $18.21.
  • 6Costco declared a 12% increase in its quarterly cash dividend, signaling confidence in its financial health and commitment to returning capital to shareholders.

Frequently Asked Questions

The primary driver of Costco's sales growth in fiscal year 2025 was a combination of a 6% increase in comparable sales, which reflects higher shopping frequency and a modest increase in average ticket size, along with the revenue generated from the 24 net new warehouses opened during the year.

Costco successfully improved its gross margin percentage by 20 basis points to 11.12%. This was achieved through a combination of factors, including strong performance in fresh foods and its co-branded credit card program, as well as strategic pricing and supplier negotiations, despite inflationary pressures on merchandise costs.

Costco opened 27 new warehouses (24 net new) in fiscal year 2025 and plans to open up to 35 new warehouses (30 net new) in fiscal year 2026. This indicates continued aggressive expansion plans.

Membership fee revenue increased by 10% in fiscal year 2025, driven by new member sign-ups and membership fee increases. The company reported strong renewal rates of 92.3% in the U.S. and Canada and 89.8% worldwide, although a higher number of online memberships are renewing at a slightly lower rate on average.