Costco Wholesale Corporation (COST) continues to impress investors and shoppers alike with its robust business model and strategic pricing. The company's membership-based approach and commitment to offering high-quality products at unbeatable prices have positioned it as a leader in the sector. Costco's Robust Membership Model Costco's success lies in its membership-based business model, which generates a reliable revenue stream and fosters strong customer loyalty. Members pay an annual fee to access Costco ...

Costco shoppers stocked up on supplies in anticipation of the US port strike and Hurricane Helene.Costco says the "abnormal" activity had a measurable impact on monthly sales.The quick resolution to the port strike will likely minimize the disruption to the flow of imports. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Go to newsletter preferences Thanks for signing up! Access your favorite topics in ...

Key TakeawaysCostco saw sales jump 9% in September compared to the same month a year ago.Net sales for the month totaled $24.6 billion.One reason for the bump, according to Costco, was “abnormal consumer activity” due to port strikes and Hurricane Helene. Shoppers didn’t pinch pennies at Costco (COST) last month. The popular wholesaler said Wednesday that it saw sales jump 9% in September compared to the same month a year ago—with net sales for the month totaling $24.6 billion. One reason for the bump in sa ...

ISSAQUAH, Wash., Oct. 09, 2024 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $24.62 billion for the retail month of September, the five weeks ended October 6, 2024, an increase of 9.0 percent from $22.59 billion last year. Comparable sales were as follows:   5 Weeks      U.S.6.5%  Canada5.7%  Other International8.5%      Total Company6.7%      E-commerce22.9%      Comparable sales excluding the impacts from changes in gasoline prices ...

Nvidia stock climbed 4% on Tuesday, extending its rally to 14% in five days.The chipmaker's market value soared by $400 billion — more than Costco is worth.Nvidia and CEO Jensen Huang are riding high on massive buzz around its new Blackwell chip. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Go to newsletter preferences Thanks for signing up! Access your favorite topics in a personalized feed while y ...

Membership and Growth - Total paid members reached 76.2 million in 2024, up from 71 million in 2023, representing a growth of approximately 7.4%[24] - Membership renewal rate was 92.9% in the U.S. and Canada, and 90.5% worldwide at the end of 2024[23] - Executive members accounted for approximately 73.3% of worldwide net sales in 2024[22] - Membership growth and loyalty are critical, with a focus on increasing Executive membership penetration and maintaining high renewal rates[48] - Membership fees increased to $65 per year for Gold Star and Business memberships, and the Executive membership fee rose from $120 to $130 effective September 1, 2024[25] Financial Performance - Total revenue for the 52 weeks ended September 1, 2024, was $254,453 million, an increase of 5% from $242,290 million in the previous year[188] - Net income attributable to Costco for the same period was $7,367 million, up 17% from $6,292 million in the prior year[188] - Basic net income per common share attributable to Costco increased to $16.59, compared to $14.18 in the previous year, reflecting a growth of 17%[188] - The company reported operating income of $9,285 million, which is a 14% increase from $8,114 million in the previous year[188] - Membership fees increased to $4,828 million, up from $4,580 million, marking a growth of approximately 5.4%[188] Assets and Liabilities - Total current assets decreased to $34,246 million from $35,879 million year-over-year, a decline of approximately 5%[194] - Total assets increased to $69,831 million, up from $68,994 million, representing a growth of about 1.2%[194] - Total liabilities rose to $46,209 million, compared to $43,936 million in the previous year, indicating an increase of approximately 5%[194] - Cash and cash equivalents decreased significantly to $9,906 million from $13,700 million, a drop of about 27%[194] - Total equity at September 1, 2024, was $23,622 million, up from $20,647 million at August 28, 2022, indicating a growth of 14.3%[199] Inventory and Merchandise - Merchandise inventories increased to $18,647 million, up from $16,651 million, reflecting a growth of approximately 12%[194] - Merchandise inventories decreased by $2,068 million during the fiscal year, contrasting with an increase of $1,228 million in the previous year[199] - Merchandise inventories increased to $18,647 million in 2024 from $16,651 million in 2023, representing a growth of about 6%[215] Employee and Compensation - The average hourly wage for employees in the U.S. reached approximately $31 per hour by the end of 2024[30] - The company employed 333,000 employees worldwide at the end of 2024, an increase from 316,000 in 2023[31] - The company aims to maintain a target ratio of at least 50% of its employee base as full-time employees[28] - The company’s retirement plan expenses were $963 million, $914 million, and $824 million for 2024, 2023, and 2022 respectively[242] - The company reported stock-based compensation of $818 million for the fiscal year, an increase from $774 million in the previous year[199] International Operations - International operations accounted for 28% of net sales and 33% of operating income in 2024, indicating a significant contribution to overall performance[79] - The company plans to continue expanding its international operations, which may be affected by various external factors including political and economic conditions[85] - Fluctuations in foreign exchange rates may adversely affect the financial performance of international operations, increasing exposure as the company expands globally[79] Risks and Challenges - The company faces risks related to cybersecurity, including potential reputational damage and increased costs from incidents[56] - Payment-related risks include reliance on third-party services for transaction processing, which could disrupt operations if these services are compromised[59] - The company is subject to local regulations that may restrict warehouse construction and operations, impacting future growth[45] - Disruptions in supply chain operations could adversely affect sales and member satisfaction, highlighting the importance of efficient logistics[50] - The company must effectively respond to changing consumer preferences to maintain market share and member relationships[51] Investments and Debt - Long-term debt with fixed interest rates was $5,919 million as of the end of 2024[165] - The company issued four Guaranteed Senior Notes totaling approximately $500 million in November 2023, with fixed interest rates ranging from 1.400% to 2.120%[262] - The estimated fair value of the company's long-term debt, including the current portion, was approximately $5,919 million in 2024[263] - The company repaid $77 million of its Guaranteed Senior Notes in July 2024[262] Cash Flow and Dividends - Cash dividends declared during the fiscal year amounted to $9,041 million, significantly higher than $1,251 million in the previous year[199] - Cash dividends declared in 2024 totaled $8,589 million, or $19.36 per share, compared to $1,703 million, or $3.84 per share, in 2023[274] - Total cash provided by operating activities for the fiscal year was $11,339 million, compared to $11,068 million in the prior year, reflecting a year-over-year increase of 2.4%[199] Technology and Innovation - The company is investing in technology and IT transformation projects to enhance digital resiliency, which is vital for operations[53] - The company is investing in its websites and mobile applications to enhance the omnichannel experience for members, which is crucial for maintaining competitive advantage[63]

Costco's sales growth was weak in the fourth quarter, but this segment was strong.Investors are very forgiving when it comes to the stock of Costco Wholesale (COST 0.85%). Although it dipped last week after reporting a mere 1% year-over-year increase in revenue, it's still up 34% year to date, strongly outpacing the S&P 500.Costco has built up its reputation over many decades to become so deserving of that ironclad investor confidence. It's reliable for steady growth, and the market isn't willing to send it ...

Costco revealed during a recent earnings call that it has slashed the prices of numerous popular Kirkland Signature items, welcome news for Americans affected by inflation since 2021.  Chief Financial Officer Gary Millerchip said the price of KS Macadamia nuts has fallen from $18.99 to $13.99, Spanish Olive Oil 3-liter from $38.99 to $34.99, Standard Foil from $31.99 to $29.99, laundry packs from $19.99 to $18.99 and the Baguette 2-pack from $5.99 to $4.99.Millerchip said the price of Kirkland Signature Bon ...

Costco Wholesale Corporation (COST) reported its fourth-quarter fiscal 2024 results last week, sparking fresh debate among investors about the stock's future direction. As a dominant player in the retail sector, Costco has long been known for its stability and strong customer base, even in the face of broader economic headwinds. Now that its latest earnings are out, investors are contemplating whether to increase their stake or hold tight to their current investments.Breaking Down Costco's Performance: A Mi ...

Costco NASDAQ: COST has been a big winner so far this year. Consumer staples stocks have generally had a good year, with the Consumer Staples Select Sector SPDR Fund NYSEARCA: XLP providing a total return of 15%. However, that still lags the over 20% return of the S&P 500.Costco has particularly impressed. Its 33% total return this year surpasses its sector and the industry by a wide margin. So, what has been driving Costco’s recent success, and is there still room for this stock to run?Get Costco Wholesale ...