Costco Wholesale Corporation has reported robust financial results for the third quarter (12 weeks) and the first 36 weeks of fiscal 2025, ended May 11, 2025. The retailer posted an 8.0% year-over-year increase in net sales for the quarter, reaching $61.96 billion, compared to $57.39 billion in the same period last year. Net sales for the first 36 weeks rose 8.2% to $185.48 billion, up from $171.44 billion last year.
Costco Q3 FY25 Results
Costco Wholesale Corporation reported its third-quarter and year-to-date results for fiscal 2025, ended May 11, 2025, showcasing solid performance across its business segments. For the 12-week quarter, the company posted total revenue of $63.21 billion, up 8.0 percent from $58.52 billion in the same period last year. This growth included $61.97 billion in net sales and $1.24 billion in membership fee revenue, which marked a 10.4 percent year-over-year increase.
Operating expenses rose in line with revenue. Merchandise costs climbed to $54.99 billion from $51.17 billion a year ago, while selling, general, and administrative expenses reached $5.68 billion, compared to $5.15 billion in the previous year. Operating income stood at $2.53 billion, an increase from $2.20 billion last year. Other income and expenses included $35 million in interest expense and $85 million in net interest income and other items. This brought income before income taxes to $2.58 billion, up from $2.28 billion in Q3 2024. After accounting for $677 million in income tax provisions, Costco reported a net income of $1.90 billion for the quarter. Diluted earnings per share rose to $4.28, compared to $3.78 during the same period last year.
For the 36 weeks ended May 11, 2025, Costco posted total revenue of $189.08 billion, an 8.2 percent increase from $174.76 billion the previous year. Net sales during this period totaled $185.48 billion, up from $171.44 billion, while membership fee income rose to $3.60 billion from $3.32 billion. Operating income reached $7.04 billion, up from $6.24 billion a year ago. The company reported net income of $5.49 billion for the 36-week period, with diluted earnings per share at $12.34, compared to $5.01 billion and $11.27 per share, respectively, in fiscal 2024.
Comparable sales growth remained robust. For the 12-week third quarter, U.S. comparable sales increased 6.6 percent (7.9 percent adjusted), Canada rose 2.9 percent (7.8 percent adjusted), and Other International increased 3.2 percent (8.5 percent adjusted). Total company comparable sales grew 5.7 percent (8.0 percent adjusted). E-commerce sales surged 14.8 percent during the quarter and 16.4 percent year-to-date. Adjusted for gasoline prices and foreign exchange impacts, e-commerce sales rose 15.7 percent in Q3 and 17.2 percent over 36 weeks.
The company’s balance sheet as of May 11, 2025, showed strong liquidity and asset growth. Cash and cash equivalents totaled $13.84 billion, up from $9.91 billion on September 1, 2024. Merchandise inventories were $18.61 billion, and total current assets reached $38.15 billion. Property and equipment, net, was valued at $30.58 billion, while total assets increased to $75.48 billion from $69.83 billion. On the liabilities side, accounts payable totaled $19.82 billion, accrued salaries and benefits stood at $4.81 billion, and accrued member rewards were $2.58 billion. Deferred membership fees reached $2.73 billion. Total current liabilities amounted to $37.58 billion, and long-term debt, excluding current portion, was $5.72 billion. Total liabilities increased to $48.36 billion from $46.21 billion.
Costco currently operates 905 warehouses globally. This includes 624 locations in the United States and Puerto Rico, 109 in Canada, 41 in Mexico, 37 in Japan, 29 in the United Kingdom, 19 in Korea, 15 in Australia, 14 in Taiwan, 7 in China, 5 in Spain, 2 in France, and one each in Iceland, New Zealand, and Sweden. The company also operates e-commerce platforms in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan, and Australia.
Following the release of its strong third-quarter earnings, Costco’s stock price rose 5 percent, reflecting investor optimism about the company’s performance and growth outlook.
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