Company: COST
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0000909832-25-000033
Chunk: 65

Company: COSTCO WHOLESALE CORP /NEW
Filing Date: 2025-06-05
Form: 10-Q
Item: Item 2
Chunk 65
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 costs as a percentage of sales, less or no direct membership warehouse competition, or lack e-commerce or business delivery.

In discussions of our consolidated operating results, we refer to the impact of changes in foreign currencies relative to the U.S. dollar, which are differences between the foreign-exchange rates we use to convert the financial results of our international operations from local currencies into U.S. dollars. This impact is calculated based on the difference between the current and prior period's exchange rates. The impact of changes in gasoline prices on net sales is calculated based on the difference between the current and prior period's average price per gallon. Results expressed excluding the impacts of foreign-exchange and gasoline prices are intended as supplemental information and are not a substitute for net sales presented in accordance with U.S. GAAP and should be reviewed in conjunction with results reported in accordance with U.S. GAAP.

Our fiscal year ends on the Sunday closest to August 31. References to the third quarter of 2025 and 2024 relate to the 12-week fiscal quarters ended May 11, 2025, and May 12, 2024. References to the first thirty-six weeks of 2025 and 2024 relate to the 36 weeks ended May 11, 2025, and May 12, 2024. Certain percentages presented are calculated using actual results prior to rounding.

Highlights for the third quarter of 2025 versus 2024 include:

•Net sales increased 8% to $61,965, driven by an increase in comparable sales and sales at 29 net new warehouses opened since the end of the third quarter of 2024;

•Membership fee revenue increased 10% to $1,240, primarily driven by new member sign-ups and membership fee increases;

•Gross margin percentage increased 41 basis points; 29 basis points excluding the impact of gasoline price deflation on net sales;

•SG&A expenses as a percentage of net sales increased 20 basis points; 11 basis points excluding the impact of gasoline price deflation;

•Net income increased to $1,903, $4.28 per diluted share, compared to $1,681, $3.78 per diluted share in 2024. Foreign-exchange rates had a negative impact on net income of $35, $0.08 per diluted share; and

•A quarterly cash dividend of $1.30 per share, a 12% increase, was declared on April 16, 2025, and paid on