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 9% to $57.392 billion in Q3 2024, exceeding expectations. This growth was primarily driven by a 7% increase in comparable sales and the addition of 24 new warehouses since the end of Q3 2023.
Gross margin increased by 52 basis points to 10.84%, exceeding expectations. This improvement is partially attributed to the absence of a $298 million charge related to discontinued charter shipping activities in Q3 2023, and also to improved core merchandise category sales.
Selling, general, and administrative (SG&A) expenses as a percentage of net sales decreased by 15 basis points to 8.96%, reflecting improved operational efficiency and productivity.