Brian Moore’s Post

Costco, the beloved membership-based warehouse retailer, recently shared its financial results for the first quarter of fiscal year 2025, and the news is looking promising for both shoppers and investors. The company reported a 7.5% increase in net sales, reaching an impressive $60.99 billion compared to the same period last year. This growth is driven in part by customers spending more during their visits to the warehouse. It is true that we are spending more during our visits to the warehouse. Costco's net income climbed to $1.798 billion, or $4.04 per share, up from $1.589 billion, or $3.58 per share, in the previous year. Notably, e-commerce sales jumped by a remarkable 13%, highlighting Costco's ability to adapt to changing shopping habits. Costco now has 897 warehouses operating worldwide, making it easier than ever for members to find a Costco nearby. The company also saw impressive growth in various product categories, including jewelry, home furnishings, and health and beauty products. And yes, those 1-ounce gold bars are real and often sell out quickly due to high demand. Recently, Costco raised its annual membership fee for the first time in seven years. The fee increase was modest, rising from $60 to $65 for Gold Star members and from $120 to $130 for Executive members. While that might sound concerning at first, it's important to remember that this fee increase helps support the company's ability to keep prices low on products. Despite the change, membership growth remained strong, with paid household memberships rising by about 8%. Looking ahead, Costco has plans to open 20 more warehouses in the coming fiscal year and expects its online sales to continue growing at a strong pace, building on the impressive 13% increase seen this quarter. This expansion could mean even more shopping options and potentially new job opportunities in various communities. In summary, Costco's impressive performance is great news for both shoppers and investors alike. It suggests that the company is well-positioned to continue delivering value to its members while adapting to the ever-changing retail landscape. #investing #earnings #wallstreet #stockmarket #costco #retail #corporatenews #membership #warehouse #financialresults #ecommerce #growth #businessstrategy #investors #shoppers #success #community #gold #expansion #value #shoppingexperience #notfinancialadvice

Costco’s Q1 Performance: Grocery Sales and Membership Growth Drive Success 𝗞𝗲𝘆 𝗣𝗼𝗶𝗻𝘁𝘀 • Net Sales Increase: Costco Wholesale’s net sales rose by 7.5% to $60.99 billion in Q1, with same-store sales up 7.1%. • Membership Fee Income Growth: Membership fee income increased by 7.8%, following the first fee hike in seven years. • Traffic Growth: U.S. store traffic increased by 4.9%, indicating strong customer engagement. • E-commerce Expansion: Online sales grew by 13.2% on an adjusted basis, continuing a positive trend. • Product Performance: Meat sales experienced double-digit growth, with strong demand for both premium and value cuts. 𝗪𝗵𝗮𝘁 𝗶𝘁 𝗠𝗲𝗮𝗻𝘀 ✅ Value Proposition Resonates: The membership fee increase has not deterred customers, highlighting Costco’s strong value proposition. ✅ Balanced Consumer Demand: Growth in both premium and value meat cuts reflects Costco’s ability to cater to diverse consumer preferences. ✅ Digital Growth: The significant rise in e-commerce sales underscores the effectiveness of Costco’s online strategy. ✅ Operational Expansion: With plans to open 20 more warehouses in fiscal 2025, Costco is poised for continued growth. Progressive Grocer | Read more: https://lnkd.in/gcREFZTa #Retail #Supermarkets #Ecommerce #Membership #GrocerySales #ClubStores #Meat

Ever wondered why Costco Wholesale is such a monster? Hint: It's all about their Membership Fees! 💸 💸 Costco's unique business model, centered around membership fees rather than relying solely on product sales, gives it a significant pricing edge over traditional retailers like Walmart and Target. To bolster that point, purchasing a Gold Membership for $60 or an Executive Membership for $120 directs those funds directly to the retailer's profits. Costco's goal isn't solely to boost sales within the warehouse clubs but rather to encourage membership renewal upon expiration. While these competitors need customers to make purchases in order to generate revenue, Costco benefits from membership fees going directly to its bottom line, regardless of whether members shop in-store. One key advantage of Costco's membership-based model is that it can afford to mark up products less than its rivals. This is because Costco saves money through various strategies, such as stocking a limited supply of items, leveraging its buying power to negotiate lower prices with vendors, and offering its own Kirkland Signature brand, which allows for further cost savings. Additionally, Costco maintains lower profit margins compared to traditional retailers, which translates to lower prices for its members. While Walmart typically operates with gross profit margins between 23.1% and 24.9%, Costco's gross margin hovers around 12% to 13%. This means that Costco's members are paying less for the goods they purchase compared to customers at other retailers. Overall, Costco's ability to offer high-quality products at competitive prices, coupled with its membership-based revenue model, positions it as a formidable player in the retail industry and gives it a unique pricing edge over its competitors. In a time when money is tight with most U.S. families, this avenue of business and customer appeal is considerably more attractive than most. 🛍 🛒 *** #Business #ClubStore #Costco #Retail #Wholesale #CustomerSpending

Costco Tops Quarterly Estimates 13th December 2024 Costco has beaten first-quarter revenue and profit expectations after its bulk and discounted offerings attracted budget-conscious shoppers to its warehouses around the world. Over the 12 weeks to 24 November, the US group’s net sales increased 7.5% to $60.99bn. Meanwhile, net profits rose from €1.59bn to $1.80bn, boosted by a recent hike in membership fees. On a comparable basis (excl. fuel and currency exchange), sales were up 7.1% – an improvement on the 6.9% rise in the previous quarter. In its 617 US outlets, sales rose 7.2%, buoyed by pre-Black Friday sales and early shopping for the holiday season. Costco’s 109 warehouses in Canada saw sales rise by 6.7%, while its 171 sites across Europe and Asia (including 29 in the UK) saw sales increase by 7.1%. Meanwhile, e-commerce sales growth slowed to 13.2% from 19.5% in the previous quarter. “It seems like you saw more than just bulk food sales growing. So it looks like there was a little bit of an uptick in other goods, not necessarily big-ticket discretionary items… but you’re seeing some sales growth in some different aisles of the store,” said Brian Mulberry, client portfolio manager at Zacks Investment Management, which has a stake in Costco. NamNews Implications: * Costco was made for the current economic climate, everywhere… * So, no surprises… * The only question for suppliers: * ‘Are we securing and maintaining our fair share of potential Costco business’ * b(and if not, why not?) #Costco

🚀 Costco's Growth Trajectory: What's Next? 🚀 Costco Wholesale just wrapped up an impressive Q4 in 2023, with an 11% increase in sales year-over-year and its stock is flirting with record highs! Here's what's fueling their growth and what we might expect in the future: 1️⃣ **Membership Fees**: With a jump from 53.3 million to 55.5 million members within a year, and a 12.5% rise in membership revenue, it's clear Costco knows how to keep their base growing and satisfied. 2️⃃ **E-commerce Strength**: A stellar 25% growth in digital sales shows Costco is making serious plays online, capturing more of the market by mirroring their in-store low prices. 3️⃣ **Global Footprint**: Costco isn’t just expanding; it’s making smart moves by strengthening its presence in existing markets and planning new warehouses in Canada, Mexico, and the UK, pushing international sales up by 17%. 🤔 Have you noticed an enhancement in your shopping experience either online or internationally with Costco? What do you think will be the biggest challenge or opportunity for them as they continue this expansion? 💬 Let's discuss how Costco’s strategies might influence wider retail trends. Do you see other retailers following suit, or will Costco continue to lead uniquely? #Costco #RetailGrowth #Ecommerce #InternationalBusiness #CustomerEngagement #MarketTrends

🏅Costco Wholesale is selling gold bars worth MILLIONS - who would've imagined! 🔻 Here’s how this unexpected venture into precious metals is paying off big time. With inflation rates on the rise, gold becomes an attractive investment as a safe-haven asset. According to the World Gold Council, global demand for gold surged by 10% in 2023. This spike in demand created a ripe opportunity for Costco to step in. Costco has a longstanding reputation for quality and value, which extends to its gold offerings. Members trust Costco to provide genuine and competitively priced products. Early on, Costco partnered with reputable gold suppliers to ensure the authenticity and purity of its gold bars. This partnership was crucial in building confidence among members, who were initially sceptical about buying gold from a retail warehouse. Applying its principle of high volume, low margins to gold bars, Costco offers them at approximately 5% lower than major online gold retailers, attracting a wide range of buyers. Costco’s extensive network of warehouses and robust e-commerce platform make purchasing gold convenient for members. The addition of gold bars also adds a layer of exclusivity and prestige to Costco’s inventory, appealing to both serious investors and casual buyers. During the initial launch, Costco’s gold bars sold out within hours, creating buzz and driving even more interest and sales. Costco’s marketing for gold bars relied on word-of-mouth and the element of surprise, rather than aggressive advertising. Following the introduction of gold bars, Costco saw a 12% increase in member visits and a 15% boost in online traffic, leading to higher overall sales. Financially, the impact has been significant. Costco sells thousands of gold bars each month, with monthly revenues exceeding $10 million from gold sales alone. This new offering has also contributed to a 7% increase in new membership sign-ups as consumers seek access to exclusive products. One notable customer even purchased gold bars worth $50,000 in a single visit, underscoring the trust and confidence members have in Costco’s offerings. 📌 Has Costco struck on gold with its gold bars? Image - Daily Mail News #ecommerce #retail #omnichannel #ecommerceusa #gold #d2c #dtc

Costco’s Q1 2025 results reveal an impressive growth story but raise questions about whether the retail giant sustains its edge as competitors dominate e-commerce and tariffs squeeze margins. 🤔 While private label dominance and membership loyalty strengthen its foundation, the reliance on $5 billion in CapEx and ambitious international expansion risks stretching resources thin. Is Costco’s strategy bold enough to redefine retail leadership, or does it risk falling behind in the digital race? The next few quarters will test whether it can outpace these challenges. We shall see.🌍 I used an AI Investment Analysis Copilot called Marvin Labs to comprehensively review Oracle's recent earnings announcement. #business #businessintelligence #money #growth

🚀 Costco’s Q1 Earnings: A Deep Dive into Success! 📈 Costco has once again demonstrated its resilience and adaptability in the retail sector, showcasing impressive earnings in its latest quarterly report. As the company navigates challenges posed by inflation and shifts in consumer behavior, it continues to thrive. 🔍 Key Insights: 1. **Strong Revenue Growth**: Costco reported a significant increase in revenue, highlighting the strength of its membership model. With over 117 million active members, their loyalty translates directly into robust sales figures. 2. **Robust Membership Model**: The company’s low-price strategy, combined with high-quality offerings, keeps consumers coming back, indicating strong membership renewals that bolster their bottom line. 3. **Digital Expansion**: Online sales have soared, demonstrating that their investments in e-commerce are paying off. Costco’s digital platform is not just an addition; it’s a core part of their growth strategy moving forward. 4. **Inflation Impact**: The inflationary landscape presents significant challenges, including rising costs. However, Costco’s efficient supply chain management has played a crucial role in mitigating some of these pressures, enabling them to maintain competitive pricing. 5. **Tactical Adaptations**: Innovations such as self-checkout and enhanced digital services are elevating the customer experience, proving that Costco is committed to continuous improvement and not merely resting on its laurels. Reflecting on Costco's performance, it becomes clear that a member-focused approach, coupled with strategic evolution, is vital for its ongoing success. What do you think about Costco’s strategies? Are there crucial lessons for other businesses in prioritizing member loyalty and embracing digital transformation? 🤔 Let’s discuss below! #Costco #EarningsReport #RetailStrategy #BusinessGrowth #Ecommerce #ConsumerLoyalty #LeadershipInsights 🔗 Read more here: [Costco Q1 Earnings](https://lnkd.in/gAqFF_zv)

Costco Wholesale ($COST) Surpasses 1Q-2025 Expectations: EPS Up 6.6%, Revenue Beats by 0.2% Costco's financial performance remains robust, with revenue at $62.15B, slightly above the $62.00B forecast, and EPS at $4.04, exceeding expectations of $3.79. This stability is bolstered by effective inventory management and a strong co-brand credit card program, enhancing gross margins. Notably, private label products now account for 33% of U.S. sales, driving profitability. Strategic growth is evident with plans for 29 new locations in FY25, including 10 international sites, supported by a $5 billion capital expenditure for infrastructure expansion. Retail media emerges as a promising revenue stream, while new warehouses aim to alleviate pressure on high-volume locations. Membership growth is impressive, with paid households increasing by 7.6% to 77.4 million. Executive memberships rose by 9.2%, and digital enhancements continue to drive engagement and spending. Operational efficiency is a key focus, with most online orders delivered within four days. Technological investments, such as door scanners, improve operations, and adaptability to shipping challenges mitigates risks. Digital transformation is underway, with the app's inventory check feature downloaded 2.9 million times in a quarter. E-commerce, excluding gas, now represents over 10% of sales, with same-day delivery options enhancing customer satisfaction. Product diversification remains strong, with non-food categories experiencing high single-digit growth and private label sales outpacing overall business growth. Expansion into gasoline and precious metals meets evolving member needs. Despite stable inflation in core merchandise, tariffs pose challenges to cost and pricing strategies. Understanding local market dynamics, such as Taiwan's holidays, is crucial for international alignment. What are your thoughts on Costco's strategic direction and growth potential? Share your insights in the comments. #Costco #InvestorInsights #MarketGrowth #COST

More on the reality of the inferior consumer market condition. #b2b #manufacturing #b2bmanufacturing #retail #demand #inferiormarket #recession #forecast