Company: COST
Filing Date: 2025-03-13
Form Type: 10-Q
Source: 0000909832-25-000015
Chunk: 29

Company: COSTCO WHOLESALE CORP /NEW
Filing Date: 2025-03-13
Form: 10-Q
Item: Item 1
Chunk 29
---
4February 16,2025February 18,2024SG&A expenses$5,663 $5,240 $11,509 $10,598 SG&A expenses as a percentage of net sales9.06 %9.14 %9.32 %9.29 %

Quarterly Results

SG&A expenses as a percentage of net sales decreased eight basis points. SG&A expenses as a percentage of net sales excluding the impact of gasoline price deflation was 9.05%, a decrease of nine basis points. The comparison to last year was favorably impacted by eight basis points due to warehouse operations and other businesses, largely attributable to improved productivity. Preopening costs were also lower by one basis point. Central operating costs and stock compensation were flat. Changes in foreign currencies relative to the U.S. dollar decreased SG&A expenses by approximately $85 compared to the second quarter of 2024, attributable to our Other International and Canadian operations.

Year-to-date Results

SG&A expenses as a percentage of net sales increased three basis points. SG&A expenses as a percentage of net sales excluding the impact of gasoline price deflation was 9.25%, a decrease of four basis points. The comparison to last year was favorably impacted by two basis points related to warehouse operations and other businesses, largely attributable to sales leverage and improved productivity. Preopening costs were also lower by two basis points, and stock compensation was lower by one basis point. SG&A was negatively impacted by one basis point due to central operating costs. Changes in foreign currencies relative to the U.S. dollar decreased SG&A expenses by approximately $93 compared to the first half of 2024, attributable to our Other International and Canadian operations.

23

Interest Expense12 Weeks Ended24 Weeks EndedFebruary 16,2025February 18,2024February 16,2025February 18,2024Interest expense$36 $41 $73 $79 

Interest expense is primarily related to Senior Notes and financing leases. The decrease in interest expense for the second quarter and first half of 2025 was primarily due to repayment of the 2.750% Senior Notes in May 2024.

Interest Income and Other, Net12 Weeks Ended24 Weeks EndedFebruary 16,2025February 18,2024February 16,2025February 18,2024Interest income$109 $147 $205 $301 Foreign-currency transaction gains, net23 31 66 34