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ISSAQUAH, Wash. — Costco Wholesale Corp. reported solid financial results for its fourth quarter and fiscal year ending September 1, despite weaker-than-expected revenue growth. But earnings beat expectations, and the company's leadership was upbeat about long-term growth prospects.
Net sales for the 16-week fourth quarter reached $78.2 billion, reflecting a 1.0% increase compared to the 17-week fourth quarter of fiscal 2023, when net sales stood at $77.4 billion. For the full fiscal year, Costco posted net sales of $249.6 billion, a 5% rise from $237.7 billion in the 53-week fiscal 2023.
Costco’s bottom line also saw a boost. The company reported net income of $2.354 billion for the fourth quarter, translating to $5.29 per diluted share, up from $2.160 billion and $4.86 per diluted share a year earlier. For the full year, net income climbed to $7.367 billion, or $16.56 per diluted share, up significantly from $6.292 billion and $14.16 per diluted share in fiscal 2023. The company benefited from a one-time tax gain of $63 million, or $0.14 per share, related to a transfer pricing settlement.
Ron Vachris, Costco's CEO, highlighted the company’s focus on long-term growth. CosIn fiscal 2024, Costco opened 30 new warehouses globally, including the company's first warehouse club in Maine, and its 600th U.S. location, in Eau Claire, Wisconsin. These expansions bring Costco's global footprint to 891 locations.
“Our fiscal 2025 plans aim for 29 new warehouse openings, 12 of which will be outside the U.S.,” Vachris said.
Vachris also pointed to the strength of Costco's e-commerce division, which experienced notable growth, particularly in large, bulky items such as appliances and furniture. Costco Logistics delivered over 4.5 million items in fiscal 2024, marking a 29% year-over-year increase. Technological upgrades, including the introduction of real-time inventory checks via the Costco app and faster checkout processes, have further enhanced members' customer experience, online and in the clubs.
Chief Financial Officer Gary Millerchip underscored Costco’s solid financial metrics, noting that adjusted for the extra week in last year's quarter, net sales would have grown 7.3% year-over-year. Comparable sales were a bright spot, with U.S. comp sales up 5.3%, and 6.3% when adjusted for gas price deflation. Canada saw a 5.5% rise in comp sales (7.9% adjusted for gas and currency fluctuations), while other international markets posted a 5.7% increase (9.3% adjusted). Total company comparable sales grew by 5.4%, or 6.9% when adjusted.
Costco’s e-commerce business was a particular highlight, with comp sales rising by 18.9%, or 19.5% adjusted for foreign exchange. “Traffic increased 6.4% globally, reflecting the growing loyalty of our customer base,” Millerchip remarked. However, the average transaction amount dipped slightly, impacted by fuel price deflation and foreign exchange headwinds. Excluding these factors, ticket sizes were up 0.5% globally.
Membership fee income, a key revenue driver for Costco, remained stable at $1.512 billion despite the shortened fiscal period, which had one fewer week than last year's.
Looking ahead, Vachris reaffirmed Costco’s commitment to its members and its strategy of offering high-quality goods at competitive prices. With planned international warehouse openings and further investments in e-commerce, Costco is poised to maintain its upward momentum. Technological enhancements will continue to be a focus, as the company seeks to streamline operations and improve customer satisfaction.
