Costco reported a robust financial performance for the third quarter of 2024, with net sales increasing by 9% to $57.392 billion, driven by a rise in comparable sales and the addition of 24 new warehouses since the third quarter of 2023. Membership fee revenue also saw an 8% increase to $1.123 billion, attributed to new member sign-ups and upgrades to Executive Membership. The company's gross margin percentage improved by 52 basis points, primarily due to the absence of a previous charge related to the discontinuation of charter shipping activities. SG&A expenses as a percentage of net sales decreased by 15 basis points, reflecting improved productivity. Net income for the quarter was $1.681 billion, or $3.78 per diluted share, compared to $1.302 billion, or $2.93 per diluted share in the previous...Show More

Costco reported a robust financial performance for the third quarter of 2024, with net sales increasing by 9% to $57.392 billion, driven by a rise in comparable sales and the addition of 24 new warehouses since the third quarter of 2023. Membership fee revenue also saw an 8% increase to $1.123 billion, attributed to new member sign-ups and upgrades to Executive Membership. The company's gross margin percentage improved by 52 basis points, primarily due to the absence of a previous charge related to the discontinuation of charter shipping activities. SG&A expenses as a percentage of net sales decreased by 15 basis points, reflecting improved productivity. Net income for the quarter was $1.681 billion, or $3.78 per diluted share, compared to $1.302 billion, or $2.93 per diluted share in the previous year. In terms of business development, Costco continues to focus on increasing net sales, particularly through comparable sales growth, which is achieved by enhancing shopping frequency and the amount spent per visit. The company's e-commerce segment experienced a 21% increase in comparable sales. Costco's strategy includes maintaining competitive pricing to reinforce member loyalty and drive sales growth, despite the impact of external factors such as tariffs and gasoline prices. Looking ahead, Costco plans to continue its expansion with the opening of 14 additional new warehouses in the remainder of fiscal 2024. The company's capital expenditure plans for the fiscal year are estimated to be between $4.3 and $4.5 billion, primarily for new and remodeled warehouses, which will be financed through cash from operations and existing cash and cash equivalents. Costco remains confident in its liquidity position and its ability to meet future capital requirements.