Summary
Costco Wholesale Corporation reported strong performance for the 12 weeks ended November 26, 2023. Net sales increased by 6% to $56.7 billion, driven by a 4% rise in comparable sales and the opening of 25 new warehouses. Membership fee revenue saw a significant 8% increase, reflecting member growth and a higher renewal rate. The company demonstrated solid operational efficiency, with gross margin percentage improving by 43 basis points. This improvement was partly due to the absence of a significant one-time charge from the previous year related to discontinued charter shipping activities. Net income grew to $1.59 billion, or $3.58 per diluted share, up from $1.36 billion, or $3.07 per diluted share, in the prior year. This reflects robust sales, improved margins, and effective cost management. The company also announced a substantial special cash dividend of $15.00 per share, reinforcing its commitment to returning capital to shareholders. Despite increased SG&A expenses as a percentage of sales, primarily due to wage increases, Costco's overall financial health remains strong, supported by healthy operating cash flows and a substantial cash and investment balance.
Financial Highlights
49 data points| Revenue | $57.80B |
| Cost of Revenue | $50.46B |
| Gross Profit | $7.34B |
| SG&A Expenses | $5.36B |
| Operating Income | $1.98B |
| Interest Expense | $38.00M |
| Net Income | $1.59B |
| EPS (Basic) | $3.58 |
| EPS (Diluted) | $3.58 |
| Shares Outstanding (Basic) | 443.83M |
| Shares Outstanding (Diluted) | 444.40M |
Key Highlights
- 1Net sales increased 6% to $56.7 billion, with comparable sales up 4% and 25 net new warehouses contributing to growth.
- 2Membership fee revenue grew 8% to $1.08 billion, driven by member acquisition, Executive Membership upgrades, and strong renewal rates.
- 3Gross margin percentage improved by 43 basis points, benefiting from warehouse operations, other businesses, and the absence of a prior year charge related to charter shipping activities.
- 4Net income rose to $1.59 billion ($3.58 per diluted share) from $1.36 billion ($3.07 per diluted share) in the prior year period.
- 5The company declared a significant special cash dividend of $15.00 per share, payable in January 2024, totaling approximately $6.7 billion.
- 6Operating cash flow was strong, generating $4.65 billion, and the company plans capital expenditures of approximately $4.4 billion to $4.6 billion for fiscal 2024.
- 7Cash and cash equivalents increased to $17.01 billion, providing ample liquidity for operations and future investments.