Summary
Costco Wholesale Corporation reported solid financial results for the second quarter and first half of fiscal year 2025, demonstrating continued top-line growth and operational efficiency. Net sales saw a healthy increase of 9% for the quarter, driven by comparable sales growth and the addition of new warehouses. Membership fee revenue also grew by 7%, reflecting successful member acquisition and the impact of recent fee increases in the U.S. and Canada. Profitability metrics showed improvement, with a slight increase in gross margin percentage and a decrease in selling, general, and administrative (SG&A) expenses as a percentage of net sales. Diluted earnings per share rose to $4.02 for the quarter, up from $3.92 in the prior year. The company also maintained a strong liquidity position, with significant cash and cash equivalents, and continued to return capital to shareholders through dividends and share repurchases. Management remains focused on its core strategy of offering value to members while navigating economic conditions and competition.
Financial Highlights
48 data points| Revenue | $63.72B |
| Cost of Revenue | $55.74B |
| Gross Profit | $7.98B |
| SG&A Expenses | $5.66B |
| Operating Income | $2.32B |
| Interest Expense | $36.00M |
| Net Income | $1.79B |
| EPS (Basic) | $4.03 |
| EPS (Diluted) | $4.02 |
| Shares Outstanding (Basic) | 443.98M |
| Shares Outstanding (Diluted) | 444.89M |
Key Highlights
- 1Net sales increased by 9% to $62.53 billion in the second quarter of fiscal 2025, compared to $57.33 billion in the prior year, driven by comparable sales growth and new warehouse openings.
- 2Membership fee revenue grew by 7% to $1.19 billion for the quarter, benefiting from new member sign-ups and recent membership fee increases in the U.S. and Canada.
- 3Diluted earnings per share (EPS) increased to $4.02 for the quarter, up from $3.92 in the second quarter of fiscal 2024.
- 4Gross margin percentage saw a modest increase of 5 basis points to 10.85% for the quarter, supported by improved efficiencies.
- 5SG&A expenses as a percentage of net sales decreased by 8 basis points to 9.06% for the quarter, indicating effective cost management.
- 6The company generated $6.01 billion in net cash from operating activities for the first half of fiscal 2025, highlighting strong operational cash generation.
- 7Costco declared a quarterly cash dividend of $1.16 per share, continuing its practice of returning capital to shareholders.