Summary
Costco Wholesale Corporation reported solid financial results for the first quarter of fiscal year 2023, ending November 20, 2022. Total revenue increased by 8% to $53.4 billion, driven by a 7% rise in comparable sales and the opening of 22 new warehouses. Membership fees saw a healthy 6% increase to $1 billion, reflecting growth in member sign-ups and upgrades to Executive memberships. Despite a 45 basis point decrease in gross margin percentage, largely due to a charge related to downsizing charter shipping activities and a slight increase in core merchandise categories, the company demonstrated strong operational efficiency. Selling, general, and administrative (SG&A) expenses as a percentage of net sales decreased by 35 basis points, benefiting from a prior year's IT asset write-off and leveraging increased sales. Diluted earnings per share rose to $3.07 from $2.98 in the prior year's comparable period, indicating continued profitability and effective cost management.
Financial Highlights
49 data points| Revenue | $54.44B |
| Cost of Revenue | $47.77B |
| Gross Profit | $6.67B |
| SG&A Expenses | $4.92B |
| Operating Income | $1.75B |
| Interest Expense | $34.00M |
| Net Income | $1.36B |
| EPS (Basic) | $3.07 |
| EPS (Diluted) | $3.07 |
| Shares Outstanding (Basic) | 443.84M |
| Shares Outstanding (Diluted) | 444.53M |
Key Highlights
- 1Total revenue reached $53.4 billion, an 8% increase year-over-year, fueled by comparable sales growth of 7% and contributions from new warehouse openings.
- 2Membership fee revenue grew by 6% to $1 billion, demonstrating sustained member loyalty and value proposition.
- 3Diluted earnings per share (EPS) increased to $3.07, up from $2.98 in the prior year's quarter, showcasing improved profitability.
- 4Gross margin percentage saw a slight decline of 45 basis points to 10.61%, primarily due to a $93 million charge related to downsizing charter shipping activities and impacts in core merchandise categories.
- 5SG&A expenses as a percentage of net sales decreased by 35 basis points, reflecting operational efficiencies and leveraging sales growth.
- 6The company repurchased approximately $141 million worth of common stock during the quarter, indicating a commitment to returning capital to shareholders.
- 7Cash flow from operations remained robust, providing $2.61 billion in the quarter, supporting ongoing investments and financial flexibility.