Costco Reports 9% Revenue Growth to $63.7 Billion in Q2 Fiscal 2025

Costco Wholesale Corporation reported strong financial performance for the second quarter of fiscal 2025, with total revenue reaching $63.7 billion, a 9% increase from $58.4 billion in the same period last year. This growth was driven by a 9% rise in net sales, which amounted to $62.5 billion, and a 7% increase in membership fees, totaling $1.2 billion. The company's net income for the quarter was $1.8 billion, or $4.02 per diluted share, compared to $1.7 billion, or $3.92 per diluted share, in the prior year. For the first half of the fiscal year, total revenue was $125.9 billion, up from $116.2 billion, with net income increasing to $3.6 billion from $3.3 billion.

Costco's operational metrics showed significant improvements, with the company opening 23 new warehouses since the end of the second quarter of 2024, bringing the total to 897 locations worldwide. The total number of paid members increased to 78.4 million, up from 73.4 million a year earlier, contributing to a renewal rate of 93% in the U.S. and Canada. The company also reported a 21% increase in e-commerce sales, reflecting a growing trend in online shopping among its members.

The filing highlighted strategic developments, including a recent increase in membership fees, which contributed approximately 3% to membership revenue during the quarter. The gross margin percentage improved slightly to 10.85%, with a five basis point increase attributed to better inventory management and cost controls. Selling, general, and administrative expenses as a percentage of net sales decreased to 9.06%, indicating improved operational efficiency.

Costco's balance sheet remains strong, with total assets of $73.2 billion as of February 16, 2025, compared to $69.8 billion at the end of the previous fiscal year. The company reported cash and cash equivalents of $12.4 billion, up from $9.9 billion, and total liabilities of $47.6 billion, an increase from $46.2 billion. The company continues to prioritize shareholder returns, declaring a quarterly cash dividend of $1.16 per share, which was paid on February 21, 2025.

Looking ahead, Costco anticipates continued growth driven by its membership model and expansion plans, with expectations to open 20 additional warehouses in the remainder of fiscal 2025. The company remains focused on maintaining competitive pricing and enhancing member loyalty, which are critical to its long-term profitability. Despite challenges such as fluctuating gasoline prices and foreign currency impacts, Costco's management expressed confidence in the company's ability to adapt and thrive in the evolving retail landscape.