Company: COST
Filing Date: 2025-04-21
Form Type: CORRESP
Source: 0000909832-25-000025
Chunk: 2

Company: COSTCO WHOLESALE CORP /NEW
Filing Date: 2025-04-21
Form: CORRESP
Chunk 2
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 sales. These drivers show the impact of changes in volume on revenue. Within the comparable sales discussion of MD&A, we also disclose that shopping frequency was the significant driver of comparable sales growth. In future filings, we will further quantify the drivers that we believe are material factors within our MD&A (acknowledging the examples you cite above for net sales and wage increases).

For the period covered by the Form 10-K we concluded that the impact of changes in prices was immaterial, except for changes in the price of gasoline, which we disclosed, along with the change in the volume of gasoline gallons sold.

Presented below for illustrative purposes is an excerpt from MD&A marked to show an example of the quantitative descriptions we intend to provide in our future filings (additions to existing language are in brackets):

Net Sales

Net sales increased $11,915 or 5% during 2024. The improvement was attributable to an increase in comparable sales [of $12,141 or 5%] and sales at new warehouses opened in 2023 and 2024 [of $4,252 or 2%], partially offset by the impact of one less week of sales in 2024 [estimated to be approximately 2%].

Notes to Consolidated Financial Statements

Note 1 - Summary of Significant Accounting Policies

Revenue Recognition, page 46

5. We note your disclosure that you derive a portion of your revenue from Citibank, including a royalty on purchases made on the co-branded card outside of Costco. Please tell us the amounts of revenue you recognized from Citibank, including such royalties, in each of the last three fiscal years and latest interim period. Please also tell us the nature and extent of any direct costs associated with this revenue. Finally, please tell us how you categorize this revenue in your table of disaggregated revenue in Note 11 on page 62.

Response (dollars in millions):

Under our Citibank, N.A. Co-Branded Credit Card Agreement, Citibank remitted to Costco revenues that totaled [*] in 2024, 2023 and 2022 and [*] during the first half of 2025.

Direct costs associated with the agreement consisted of funds the Company contributed to cover a portion of the rebate that cardholders receive. These amounts totaled [*] in 2024, 2023 and 2022 and [*] during the first half of 2025 and are reflected within revenue in

Confidential Treatment Requested by Costco Wholesale