Costco Q1 Earnings Beat Estimates, Comparable Sales Rise 5.2% Y/Y

Core Insights - Costco Wholesale Corporation reported first-quarter fiscal 2025 results with both top and bottom lines exceeding Zacks Consensus Estimates and showing year-over-year growth [1][2] Financial Performance - Adjusted earnings per share (EPS) for the quarter were $3.82, surpassing the Zacks Consensus Estimate of$3.79, and reflecting a 9.8% increase from the prior year [2] - Total revenues reached $62,151 million, a 7.5$62,045 million [3] - Net sales rose 7.5% year over year to $60,985 million, while membership fees increased by 7.8$1,166 million [6] Comparable Sales Growth - Comparable sales grew by 5.2% year over year, slightly below the estimated 5.4% increase, with U.S. comparable sales also at 5.2% [4] - Comparable sales excluding gasoline prices and foreign exchange impacts rose 7.1%, with U.S. comparable sales increasing by 7.2% [7] Membership and Customer Engagement - Membership renewal rate stood at 90.4%, indicating strong customer loyalty [5] - The number of paid household members increased by 7.6% to 77.4 million, while total cardholders grew by 7.2% to 138.8 million [6] E-commerce and Margins - E-commerce comparable sales rose 13% year over year, or 13.2% when excluding gasoline prices and currency fluctuations [8] - Gross margin expanded by 24 basis points to 11.3%, and operating income grew by 10.7% to $2,196 million [8] Store Operations and Expansion - Costco operates 897 warehouses globally, with plans to open 29 new warehouses in fiscal 2025, including three relocations [9][10] Financial Health - The company ended the quarter with cash and cash equivalents of$10,907 million and long-term debt of $5,745 million [11] - Capital expenditures for the quarter were approximately$1.26 billion, with an anticipated $5 billion for fiscal 2025 [11]