Company and Industry Summary Company Overview - The company reported net sales of **$20.97 billion** for the month, representing an increase of **6.8%** from **$19.64 billion** in the same period last year [3] Sales Performance - Comparable sales results for the month were as follows: - **U.S.**: **4.1%** - **Canada**: **3.3%** - **Other International**: **6.6%** - **Total Company**: **4.3%** - **E-commerce**: **11.6%** [3] - When excluding impacts from changes in gasoline prices and foreign exchange, comparable sales were: - **U.S.**: **5.5%** - **Canada**: **6.3%** - **Other International**: **8.4%** - **Total Company**: **6%** - **E-commerce**: **12%** [4] Traffic and Transaction Insights - Comparable traffic or frequency increased by **3.4%** worldwide and **2.8%** in the U.S. [4] - The average worldwide selling price per gallon of gas decreased by approximately **10.4%** year-over-year [5] - Average transaction value increased by **0.9%**, and when excluding gas deflation and foreign exchange, it was up **2.5%** [5] Regional Performance - Strongest comparable sales in the U.S. were observed in the **Northwest**, **Midwest**, and **Los Angeles** regions [6] - Internationally, the best results were in **Mexico**, **Taiwan**, and **Korea** [6] Merchandising Highlights - Foods and sundries showed positive mid to high single-digit growth, with strong performance in: - **Cooler** - **Candy** - **Frozen Foods** - Fresh foods increased by high single digits, particularly in: - **Meat** - **Bakery** - Non-foods also performed well with mid single-digit growth, especially in: - **Jewelry** - **Majors** - **Gift Cards** - Ancillary business sales declined by low to mid single digits, while pharmacy, optical, and hearing aid departments were top performers [7][8] Challenges and Risks - The negative impact of foreign currencies on total and comparable sales was approximately: - **Canada**: **-1.6%** - **Other International**: **-1.0%** - **Total Company**: **-0.4%** [5] - Gas price deflation negatively impacted total reported comparable sales by approximately **-1.3%** [5] - The negative impact of cannibalization was approximately **-70 basis points** for the company in May [6] Future Outlook - The upcoming June reporting period will include five weeks, starting from June 2 and ending July 6, compared to the previous year's five weeks from June 3 to July 7 [8]

Financial Performance - For the quarter ended May 2025, Costco reported revenue of $63.21 billion, an increase of 8% year-over-year [1] - EPS for the quarter was $4.28, up from $3.78 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $63.14 billion by 0.10%, and EPS also surpassed the consensus estimate of $4.25 by 0.71% [1] Key Metrics - Comparable sales for the total company increased by 5.7%, exceeding the average estimate of 5.4% from seven analysts [4] - Excluding the impact of foreign currency and gasoline prices, comparable sales for the total company rose by 8%, compared to the average estimate of 6.8% [4] - The number of warehouses worldwide was 905, slightly below the average estimate of 906 [4] - In the U.S. and Puerto Rico, the number of warehouses was 624, above the estimated 622 [4] Regional Performance - Comparable sales in the U.S. were up 6.6%, surpassing the average estimate of 5.5% [4] - Comparable sales excluding foreign currency and gasoline prices in the U.S. increased by 7.9%, compared to the average estimate of 6% [4] - Comparable sales in Canada were 2.9%, below the average estimate of 6% [4] - Comparable sales for Other International regions were 3.2%, below the average estimate of 5.6% [4] Membership Revenue - Membership fees revenue was reported at $1.24 billion, matching the average estimate from nine analysts and representing a year-over-year increase of 10.4% [4] - Net sales revenue was $61.97 billion, slightly below the average estimate of $62.05 billion, but still reflecting an 8% increase compared to the previous year [4] Stock Performance - Costco shares returned +1.9% over the past month, while the Zacks S&P 500 composite increased by +6.7% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Summary of Conference Call Company Overview - The conference call was led by Andrew Yoon, director of finance and investor relations, discussing sales results for the retail month of April, comparing it to the same period last year [1] Key Financial Metrics - Net sales for April reached $21.18 billion, marking a 7% increase from $19.8 billion in the previous year [2] - The month had one less shopping day compared to last year due to the shift in Easter, negatively impacting total and comparable sales by approximately 1.5% to 2% [2] Comparable Sales Performance - Reported comparable sales for April were as follows: - US: 5.2% - Canada: 1.5% - Other International: 3.2% - Total Company: 4.4% - E-commerce: 12.6% [3] - Comparable sales excluding impacts from gasoline prices and foreign exchange were: - Total Company: 6.7% - E-commerce: 13% [3] - Comp traffic increased by 4.2% worldwide and 5% in the US [3] Impact of External Factors - Foreign currency fluctuations negatively impacted total and comparable sales: - Canada: -1.6% - Other International: -2.5% - Total Company: -0.6% [3] - Gas price deflation negatively impacted total reported comparable sales by approximately -1.7%, with the average worldwide selling price per gallon down about 13.4% year-over-year [4] Regional Performance - Strongest comparable sales in the US were observed in the Midwest, Northeast, and Southeast regions [5] - Internationally, the best results were seen in Mexico, Korea, and Taiwan [5] Merchandise Highlights - Foods and sundries showed positive high single-digit growth [5] - Better performing departments included: - Fresh foods: high single digits - Meat and bakery: strong performance - Non-foods: mid to high single digits, with jewelry, majors, and home furnishings performing well [6] - Ancillary business sales were down mid to high single digits, while pharmacy, optical, and food court were the top performers [7] Future Outlook - The May reporting period will cover the four weeks beginning May 5 and ending June 1, compared to the same period last year [7]

Core Insights - McDonald's reported a decrease in global comparable sales by 1.0% for the first quarter of 2025, with specific declines in the U.S. and International Operated Markets, while International Developmental Licensed Markets saw an increase of 3.5% [6][7][8] - The company's consolidated revenues decreased by 3% to $5.956 billion, with a notable drop in sales from company-owned restaurants [10][23] - Diluted earnings per share fell by 2% to $2.60, reflecting a decrease in net income to $1.868 billion [10][12][23] Financial Performance - U.S. comparable sales decreased by 3.6%, while International Operated Markets saw a decrease of 1.0% [4][7] - Systemwide sales to loyalty members exceeded $31 billion over the trailing twelve months, with approximately $8 billion for the quarter [6] - Consolidated operating income decreased by 3%, impacted by pre-tax restructuring charges of $66 million [7][10] Segment Analysis - Comparable sales in the U.S. were primarily affected by negative guest counts, while mixed results were observed in International Operated Markets, particularly in the U.K. [8] - Positive comparable sales in International Developmental Licensed Markets were driven by strong performance in the Middle East and Japan [8] Revenue Breakdown - Revenues from franchised restaurants decreased to $3.661 billion, while sales from company-owned restaurants dropped to $2.132 billion [23] - Other revenues increased significantly to $162 million, reflecting a growth of 78% [23] Operating Metrics - Total operating costs and expenses decreased by 4% to $3.308 billion, with a notable reduction in expenses for company-owned restaurants [24] - Interest expense slightly increased to $376 million, while nonoperating income expense netted a loss of $57 million [24]

Costco Wholesale Corporation (COST) continued with its decent comparable sales growth in March. The performance reflects Costco’s ability to attract value-conscious shoppers with its competitive pricing and high-quality offerings.Decoding COST’s March CompsCOST’s comparable sales for March reflect its market strength. For the five weeks ended April 6, 2025, comparable sales in the United States, Canada and Other International markets grew 7.5%, 4.1% and 2.9%, respectively. Total company comparable sales ros ...

Core Insights - Costco Wholesale Corporation reported second-quarter fiscal 2025 results with total revenues exceeding estimates while adjusted earnings fell short, both metrics showing year-over-year growth [1][2][3] Financial Performance - Adjusted earnings per share were $4.02, missing the Zacks Consensus Estimate of $4.09, but up 8.4% from $3.71 in the prior year [2] - Total revenues reached $63,723 million, a 9% increase from the previous year, surpassing the Zacks Consensus Estimate of $63,224 million [3] - Comparable sales rose 6.8% year over year, exceeding the estimated 4.3%, with U.S. comparable sales growing 8.3% [3][6] Membership and Sales Growth - Membership fees increased 7.4% to $1,193 million, with paid household members rising 6.8% to 78.4 million [5] - Total cardholders grew 6.6% to 140.6 million, indicating strong customer loyalty with a membership renewal rate of 90.5% [4][5] Operational Metrics - Global shopping frequency improved by 5.7%, while average transaction size grew by 1% [6] - E-commerce sales saw a significant increase of 20.9% year over year, or 22.2% when excluding gasoline prices and currency fluctuations [7] Margin and Income - Gross margin expanded by 5 basis points to 10.9%, with operating income growing 12.3% to $2,316 million [7] - Operating margin improved by 10 basis points to 3.6%, although it fell short of the anticipated 20 basis-point expansion [7] Expansion Plans - Costco operates 897 warehouses globally, with plans to open 28 new locations in fiscal 2025 [8] Financial Health - The company ended the quarter with cash and cash equivalents of $12,356 million and long-term debt of $5,755 million [10] - Capital expenditures for the quarter were approximately $1.14 billion, with a forecast of about $5 billion for fiscal 2025 [10]