Costco reported strong Q3 fiscal 2025 results, with both earnings and revenue surpassing estimates, growing 13.3% and 8% year-over-year, respectively. Comparable sales increased by 5.7%, driven by a 6.6% rise in the United States and a 14.8% increase in e-commerce sales. Membership fees also saw a significant boost, rising 10.4%, reflecting strong customer loyalty with a 90.2% renewal rate.
Costco Wholesale Corporation delivered a strong financial performance in its third-quarter fiscal 2025, surpassing Zacks Consensus Estimates for both top and bottom lines. Quarterly earnings per share reached $4.28, an increase from $3.78 in the prior-year period, while total revenues rose 8% year-over-year to $63.205 billion. This growth was underpinned by a 5.7% increase in comparable sales, notably driven by a 6.6% rise in the United States and a significant 14.8% surge in e-commerce comparable sales. Membership dynamics remain a key strength, with fees increasing 10.4% to $1.240 billion, supported by a 6.8% growth in paid household members to 79.6 million and a high worldwide membership renewal rate of 90.2%. Furthermore, Costco demonstrated improved profitability with gross margins expanding 41 basis points year-over-year to 11.3% and operating margins improving 20 basis points to 4%, both exceeding internal projections. The company continues its expansion, opening nine new warehouses in the quarter and planning 27 for fiscal 2025, supported by a healthy balance sheet with $13.836 billion in cash and cash equivalents against $5.717 billion in long-term debt. The company's shares have reflected this positive momentum, advancing 10.1% year-to-date, outpacing the industry’s 4.5% rise.
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