Costco Files Q1 2025 10-Q

Ticker: COST · Form: 10-Q · Filed: Dec 19, 2024 · CIK: 909832

Sentiment: neutral

Topics: 10-Q, earnings, retail

TL;DR

**COSTCO Q1 2025 10-Q FILED: Check sales & membership trends.**

AI Summary

Costco Wholesale Corp filed its 10-Q for the period ending November 24, 2024. The filing covers the first quarter of fiscal year 2025. Key financial data and operational details for this period are presented, including information related to their product and membership segments.

Why It Matters

This filing provides investors with an update on Costco's financial performance and operational status for the initial quarter of their fiscal year, offering insights into sales and membership trends.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial information.

Key Numbers

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is November 24, 2024, covering the first quarter of fiscal year 2025.

What are the company's business and mailing addresses?

The company's business and mailing addresses are both listed as 999 Lake Drive, Issaquah, WA 98027.

What was the number of shares outstanding as of the reporting period?

The filing indicates 100,000,000 shares outstanding.

What is the SIC code for Costco Wholesale Corp?

The Standard Industrial Classification (SIC) code for Costco Wholesale Corp is 5331, which corresponds to Retail - Variety Stores.

When was the company formerly known as Price/Costco Inc.?

The company was formerly known as Price/Costco Inc. and the date of that name change was July 28, 1993.

Filing Stats: 4,613 words · 18 min read · ~15 pages · Grade level 13.2 · Accepted 2024-12-18 18:09:53

Filing Documents

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 3 Condensed Consolidated Statements of Income 3 Condensed Consolidated Statements of Comprehensive Income 4 Condensed Consolidated Balance Sheets 5 Condensed Consolidated Statements of Equity 6 Condensed Consolidated Statements of Cash Flows 7 Notes to Condensed Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 16

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 24

Controls and Procedures

Item 4. Controls and Procedures 24

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 24

Risk Factors

Item 1A. Risk Factors 24

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 25

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 25

Other Information

Item 5. Other Information 25

Exhibits

Item 6. Exhibits 26

Signatures

Signatures 27 2 Table of Contents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

—Financial Statements

Item 1—Financial Statements COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (amounts in millions, except per share data) (unaudited) 12 Weeks Ended November 24, 2024 November 26, 2023 REVENUE Net sales $ 60,985 $ 56,717 Membership fees 1,166 1,082 Total revenue 62,151 57,799 OPERATING EXPENSES Merchandise costs 54,109 50,457 Selling, general and administrative 5,846 5,358 Operating income 2,196 1,984 OTHER INCOME (EXPENSE) Interest expense ( 37 ) ( 38 ) Interest income and other, net 147 160 INCOME BEFORE INCOME TAXES 2,306 2,106 Provision for income taxes 508 517 NET INCOME $ 1,798 $ 1,589 NET INCOME PER COMMON SHARE: Basic $ 4.05 $ 3.58 Diluted $ 4.04 $ 3.58 Shares used in calculation (000s): Basic 443,988 443,827 Diluted 444,891 444,403 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 Table of Contents COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (amounts in millions) (unaudited) 12 Weeks Ended November 24, 2024 November 26, 2023 NET INCOME $ 1,798 $ 1,589 Foreign-currency translation adjustment and other, net ( 324 ) ( 38 ) COMPREHENSIVE INCOME $ 1,474 $ 1,551 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Table of Contents COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in millions, except par value and share data) (unaudited) November 24, 2024 September 1, 2024 ASSETS CURRENT ASSETS Cash and cash equivalents $ 10,907 $ 9,906 Short-term investments 920 1,238 Receivables, net 2,963 2,721 Merchandise inventories 20,979 18,647 Other current assets 1,754 1,734 Total current assets 37,523 34,246 OTHER ASSETS Property and equipment, net 29,336 29,032 Operating lease right-of-use assets 2,539 2,617 Other long-term assets 3,988 3,936 TOTAL ASSETS $ 73,386 $ 69,831 LIABILITIES AND EQUITY CURRENT LIAB

Legal Proceedings

Legal Proceedings The Company is involved in many claims, proceedings and litigations arising from its business and property ownership. In accordance with accounting guidance, the Company establishes an accrual for legal proceedings if and when those matters present loss contingencies that are both probable and reasonably estimable. There may be actual losses in excess of amounts accrued. The Company monitors those matters for developments that would affect the likelihood of a loss (taking into account where applicable indemnification arrangements concerning suppliers and insurers) and the accrued amount, if any, thereof, and adjusts the amount as appropriate. The Company has recorded an immaterial accrual with respect to one matter described below, in addition to other immaterial accruals for matters not described below. If the loss contingency at issue is not both probable and reasonably estimable, the Company does not establish an accrual, but monitors for developments that make the contingency both probable and reasonably estimable. In each case, there is a reasonable possibility that a loss may be incurred, including a loss in excess of the applicable accrual. For matters where no accrual has been recorded, the possible loss or range of loss (including any loss in excess of the accrual) cannot, in the Company's view, be reasonably estimated because, among other things: the remedies or penalties sought are indeterminate or unspecified; the legal and/or factual theories are not well developed; and/or the matters involve complex or novel legal theories or a large number of parties. In November 2023, a former employee filed a class action against the Company alleging claims under California law for failure to pay minimum wage, failure to pay overtime, failure to provide meal and rest breaks, failure to provide accurate wage statements, failure to reimburse expenses, failure to pay wages when due, and failure to pay sick pay. Martin Reyes v. Costco Wholesale Corpo

View Full Filing

View this 10-Q filing on SEC EDGAR

View on Read The Filing