Costco Wholesale (COST) Q4 2024 earnings summary

Executive summary

• Achieved consistent financial results in fiscal 2024, driven by value, member service, and employee culture, with Q4 net sales of $78.2 billion and net income of $2.354 billion ($5.29 per diluted share).

• Membership income grew 6.5% (normalized), with 76.2 million paid household members (+7.3% YoY), 35.4 million Executive Memberships (+9.6% YoY), and a worldwide renewal rate of 90.5%.

• Opened 30 new warehouses in 2024, including the first in Maine and the 600th U.S. location; 14 new warehouses in Q4, ending FY24 with 891 locations globally.

• E-commerce and logistics saw robust growth, with e-commerce comparable sales up 18.9% (19.5% adjusted), and 4.5 million items delivered, up 29% year-over-year.

• Technology enhancements, such as app-based inventory checks and membership card scanners, improved member experience and operational efficiency.

Financial highlights

• Q4 net income was $2.354 billion ($5.29 per diluted share), up from $2.16 billion ($4.86 per share) last year; normalized net income and EPS rose 12.7% and 12.6% year-over-year.

• Net sales for Q4 were $78.2 billion, up 1% year-over-year; adjusted for last year's extra week, sales increased 7.3%.

• Total company comparable sales rose 5.4% (6.9% adjusted for gas deflation and FX); e-commerce comp sales up 18.9% (19.5% adjusted).

• Gross margin increased 40 basis points to 11%; SG&A rate rose 8 basis points to 9.04%, mainly due to wage increases.

• Membership fee income was $1.512 billion in Q4, up 0.2% on one less week; normalized, up 7.4%.

Outlook and guidance

• 26 net new warehouses planned for fiscal 2025, with 12 outside the U.S.

• Most benefit from the recent membership fee increase will be realized in the second half of 2025 and into 2026 due to deferred accounting.

• Earnings growth cadence in 2025 expected to be less linear due to interest income and gas profit volatility.

• Forward-looking statements highlight risks from economic conditions, inflation, FX, competition, and regulatory changes.

• Continued focus on investing in member value, employee wages, and operational efficiencies.