Summary
Costco Wholesale Corporation (COST) reported strong financial results for the third quarter of fiscal year 2024, with net sales increasing by 9% to $57.4 billion. This growth was driven by a 7% increase in comparable sales and the addition of 24 new warehouses since the prior year. Membership fee revenue also saw a healthy 8% increase, reflecting solid member retention and upgrades to Executive Memberships. The company's commitment to providing value led to a gross margin increase of 52 basis points, partly due to the absence of a significant one-time charge from the prior year related to the discontinuation of charter shipping activities. Net income rose significantly to $1.68 billion, or $3.78 per diluted share, a substantial improvement from $1.30 billion, or $2.93 per diluted share, in the same quarter last year. This was bolstered by improved gross margins and a decrease in selling, general, and administrative expenses as a percentage of net sales. Despite a notable $6.7 billion special dividend paid out in January, the company maintained a strong operational cash flow of $8.4 billion for the year-to-date period, underscoring its financial resilience and ability to manage capital effectively.
Financial Highlights
50 data points| Revenue | $58.52B |
| Cost of Revenue | $51.17B |
| Gross Profit | $7.34B |
| SG&A Expenses | $5.14B |
| Operating Income | $2.20B |
| Interest Expense | $41.00M |
| Net Income | $1.68B |
| EPS (Basic) | $3.79 |
| EPS (Diluted) | $3.78 |
| Shares Outstanding (Basic) | 443.89M |
| Shares Outstanding (Diluted) | 444.83M |
Key Highlights
- 1Net sales increased 9% to $57.4 billion for the third quarter, driven by comparable sales growth and new warehouse openings.
- 2Membership fee revenue grew 8% to $1.12 billion, indicating strong member loyalty and growth.
- 3Net income surged by 29% year-over-year to $1.68 billion ($3.78 per diluted share).
- 4Gross margin percentage improved by 52 basis points, benefiting from operational efficiencies and the absence of a prior year charge.
- 5Selling, general, and administrative expenses decreased as a percentage of net sales by 15 basis points, reflecting improved productivity.
- 6The company declared and paid a quarterly cash dividend of $1.16 per share.
- 7Year-to-date operating cash flow remained robust at $8.38 billion.