Key Highlights:
Financial Performance:
- Net sales increased 7.5% to $60.99 billion, compared to $56.72 billion in the same period last year.
- Net income for the quarter was $1.798 billion, or $4.04 per diluted share, compared to $1.589 billion, or $3.58 per diluted share, in the prior year. This includes a $100 million tax benefit related to stock-based compensation.
- Excluding the tax benefit, net income and diluted EPS growth were 9.9% and 9.8%, respectively.
- Gross margin improved by 24 basis points, driven by strong sales performance.
Sales and Comparable Sales:
- Comparable sales for the first quarter increased by 5.2%, with adjusted comparable sales (excluding gasoline prices and foreign exchange impacts) rising by 7.1%.
- U.S. comparable sales were particularly strong at 7.2% (adjusted).
- E-commerce comparable sales surged by 13.0% (13.2% adjusted).
Membership:
- Membership fee revenue increased by 7.8%.
- The worldwide membership renewal rate remained high at 90.4%, with a 92.8% renewal rate in the U.S. and Canada.
- Total paid memberships grew by 7.6% to 77.4 million, while total cardholders increased by 7.2% to 138.8 million.
Warehouse Expansion:
- Costco opened two new warehouses during the quarter, one in Zaragoza, Spain and the other in Napa, California.
- The company has plans to open six additional warehouses in the remainder of FY 2025.
Digital Metrics:
- E-commerce site traffic increased by 16%.
- Average order value for online purchases grew by 4%.
- Costco Logistics deliveries saw a 13% increase, with items delivered rising by 19%.