Sector: Consumer Staples|Industry: Discount Stores|Market Cap: $439.05B|Employees: 333K
Costco Wholesale Corporation operates membership warehouses in multiple countries, primarily in the U.S. and Canada. The company's core business model focuses on offering low prices on a limited selection of nationally-branded and private-label products, generating high sales volume and rapid inventory turnover. Costco's competitive advantages include its efficient distribution and warehouse facilities, strong member loyalty, and direct relationships with suppliers.
Net sales increased by 6% to $57.331 billion in Q2 2024, and 6% to $114.048 billion in the first half of 2024. This growth is attributed to a 6% and 5% increase in comparable sales during the same periods, respectively, and the opening of 26 new warehouses.
Gross margin increased by eight basis points to 10.80% in Q2 2024, and 25 basis points to 10.86% in the first half of 2024. This improvement is mainly due to warehouse ancillary and other businesses, partially offset by increased 2% rewards.
SG&A expenses as a percentage of net sales increased by three basis points in Q2 2024 and 14 basis points in the first half of 2024. This increase is primarily driven by warehouse operations and other businesses, partially offset by central operating costs.