Costco(US:COST) ZACKSยท2025-05-30 14:40Core Insights - Costco Wholesale Corporation reported strong third-quarter fiscal 2025 results, with both earnings and revenues exceeding expectations and showing year-over-year growth [1][2]. Financial Performance - Quarterly earnings per share were $4.28, surpassing the Zacks Consensus Estimate of $4.25 and increasing from $3.78 in the prior year [2]. - Total revenues reached $63,205 million, an 8% increase from the previous year, and also above the Zacks Consensus Estimate of $63,140.5 million [2]. - Comparable sales grew by 5.7% year over year, exceeding the estimated 4.7%, with U.S. comparable sales increasing by 6.6% [3][6]. Membership and Sales Growth - Membership fees rose by 10.4% to $1,240 million, with total paid household members increasing by 6.8% to 79.6 million [5]. - The number of total cardholders grew by 6.6% to 142.8 million, indicating strong customer loyalty with a membership renewal rate of 90.2% [4][5]. Operational Metrics - Global shopping frequency improved by 5.2%, while average transaction size grew by 0.4% [6]. - E-commerce sales saw a significant increase of 14.8% year over year, or 15.7% when excluding gasoline prices and currency fluctuations [7]. Margin and Income Growth - Gross margin expanded by 41 basis points to 11.3%, and operating income increased by 15.2% to $2,530 million, with operating margin improving by 20 basis points to 4% [7]. Expansion Plans - Costco operates 905 warehouses globally, with plans to open 27 new locations in fiscal 2025, including three relocations [8][9]. Financial Health - The company ended the quarter with cash and cash equivalents of $13,836 million and long-term debt of $5,717 million, with capital expenditures of approximately $1.13 billion for the quarter [11].