Costco Wholesale Corporation reported a strong financial performance for the fiscal year ending August 31, 2025, with net sales reaching $269.9 billion, an increase of 8% from $249.6 billion in the previous year. The company's net income also rose by 10% to $8.1 billion, or $18.21 per diluted share, compared to $7.4 billion, or $16.56 per diluted share, in 2024. This growth was primarily driven by a 6% increase in comparable sales, which was bolstered by a 5% rise in shopping frequency and a 1% increase in average ticket size. Membership fee revenue also saw a 10% increase to $5.3 billion, reflecting both new member sign-ups and fee increases.
In terms of operational metrics, Costco opened 27 new warehouses during the fiscal year, including three relocations, bringing the total number of warehouses to 914 worldwide. The company experienced a notable increase in its membership base, with total paid members reaching 81 million, up from 76.2 million in 2024. The renewal rate for memberships stood at 92.3% in the U.S. and Canada, and 89.8% globally, although the latter was slightly impacted by a higher proportion of memberships sold online, which tend to have lower renewal rates.
Costco's gross margin percentage improved by 20 basis points to 11.12%, aided by strong performance in core merchandise categories, particularly fresh foods. However, the company faced challenges from lower gasoline prices, which negatively impacted net sales by approximately $2.3 billion. Selling, general, and administrative (SG&A) expenses as a percentage of net sales increased slightly to 9.25%, reflecting ongoing investments in employee compensation and operational efficiencies.
Looking ahead, Costco plans to continue its expansion strategy, with expectations to open up to 35 new warehouses in fiscal 2026. The company is also focused on enhancing its e-commerce capabilities, which accounted for approximately 7% of total net sales in 2025. Despite potential challenges from economic conditions and competitive pressures, Costco remains optimistic about its growth trajectory, emphasizing its commitment to providing value to members through a limited selection of high-quality products at competitive prices.
About COSTCO WHOLESALE CORP /NEW
Costco Wholesale operates membership-based warehouses offering high-quality, low-priced products across food, non-food, and ancillary categories. Its core business model emphasizes volume purchasing, efficient distribution, and private-label Kirkland Signature products. Serving global markets, Costco combines in-store and e-commerce channels to deliver value, convenience, and member loyalty through a streamlined, no-frills shopping experience and a focus on operational efficiency.
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