Costco Wholesale Corporation is a well-known global retail giant with membership-only warehouse clubs. Founded in 1983 by James Sinegal and Jeffrey Brotman in Seattle, Washington, Costco now has over 890 locations worldwide. The company offers a variety of products, including groceries, electronics, and appliances, all at lower prices compared to traditional stores. Costco is also renowned for its private label brand, Kirkland Signature, which offers high-quality products at affordable prices.
Costco’s business model is based on efficiency and bulk buying to save money for its members. The company is dedicated to quality and customer satisfaction, with a 100% satisfaction guarantee on its products. With over 136.8 million loyal members as of 2024, Costco remains a leading force in the retail industry. The company’s headquarters are in Issaquah, Washington, and it is known for its innovative retailing approach.
Costco Fiscal Q2 2025
Costco Wholesale (COST) reported strong results for the second quarter of fiscal 2025.
Net sales for the quarter increased by 9.1% to $62.53 billion. The company also saw an increase in net income, reporting $1.788 billion ($4.02 per diluted share) for the quarter and $3.59 billion ($8.06 per diluted share) for the first 24 weeks.
In February 2025, Costco’s net sales for the four-week period ending March 2 were $19.81 billion, an 8.8% increase from last year. The company now operates 897 warehouses worldwide, with a significant presence in the United States, Canada, and other countries. Costco continues to expand its e-commerce operations, serving various regions globally.
Board Statements
Ron Vachris, President and CEO, highlighted the company’s progress. Costco’s second-quarter revenue increased by 9% from last year. Net sales for the quarter rose by 9.1%, compared to last year. Membership fees for the quarter totaled $1.19 billion, up from $1.11 billion last year. Costco now has 78.4 million paid memberships and 140.6 million total cardholders, with a worldwide renewal rate of 90.5%.
Ron mentioned that Costco opened one new warehouse in Q2 and plans for 28 new openings in fiscal year 2025. The company is also committed to providing industry-leading pay and benefits for employees, with a new agreement that includes multiple wage increases over the next few years.
Impact on the Stock Market
Costco’s Q2 2025 earnings report had a big impact on its stock. Even though sales went up by 9.1% to $62.53 billion, the company’s earnings were lower than expected. Because of this, Costco’s stock dropped by 5% in pre-market trading. Investors are worried about rising costs and inflation affecting profits, despite the strong sales growth and solid membership base.
