The following is a summary of the Costco Wholesale Corporation (COST) Q1 2025 Earnings Call Transcript:
Financial Performance:
Costco Wholesale Corporation reported Q1 net income of $1.798 billion, or $4.04 per diluted share, a significant increase from $1.589 billion, or $3.58 per diluted share last year.
Net sales for the quarter were $60.99 billion, marking a 7.5% increase from the previous year's $56.72 billion.
Membership fee income grew to $1.166 billion, up 7.8% year-over-year.Gross margin improved by 24 basis points year-over-year to 11.28%.
Business Progress:
Opened seven new warehouses, including one relocation, adding six net new buildings with four outside the U.S.
Set new records in U.S. bakery division with 4.2 million pies sold prior to Thanksgiving and a record 274,000 whole pizzas sold on Halloween.
Prescription growth in U.S. pharmacy business exceeded 19%, setting new volume records.
Costco Logistics achieved nearly 1 million deliveries in Q1, with significant improvements in delivery speed.
Opportunities:
Continuing to focus on new warehouse openings, aiming for 29 during fiscal year 2025, enhancing market presence both domestically and internationally.
Increased focus on e-commerce and digital strategies, including tech enhancements like the ability to check warehouse inventory via the Costco app, expected to drive future growth and customer satisfaction.
Risks:
The growth from newer endeavors such as retail media is in early stages, implying an uncertain growth trajectory.
Potential operational disruptions due to ongoing supply chain challenges, including the predictability of on-time shipping and the impact of global issues like port strikes.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
