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Costco Wholesale Corp  (NASDAQ: COST)
Other Ticker:  
 
    Sector  Retail    Industry Wholesale
   Industry Wholesale
   Sector  Retail
 
Price: $1,032.6050 $-1.73 -0.168%
Day's High: $1034.7063 Week Perf: 4.14 %
Day's Low: $ 1,030.01 30 Day Perf: 7.81 %
Volume (M): 82 52 Wk High: $ 1,078.24
Volume (M$): $ 85,319 52 Wk Avg: $921.72
Open: $1,030.01 52 Wk Low: $788.20



 Market Capitalization (Millions $) 459,392
 Shares Outstanding (Millions) 445
 Employees 333,000
 Revenues (TTM) (Millions $) 264,086
 Net Income (TTM) (Millions $) 12,349
 Cash Flow (TTM) (Millions $) 3,261
 Capital Exp. (TTM) (Millions $) 5,040

Costco Wholesale Corp
Costco operates membership warehouses based on the concept that offering members very low prices on a limited selection of nationally branded and selected private label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover. This rapid inventory turnover, when combined with the operating efficiencies achieved by volume purchasing, efficient distribution and reduced handling of merchandise in no-frills, self-service warehouse facilities, enables Costco to operate profitably at significantly lower gross margins than traditional wholesalers, discount retailers and supermarkets.

Costco buys nearly all of its merchandise directly from manufacturers for shipment either directly to Costco's selling warehouses or to a consolidation point ('depot') where various shipments are combined so as to minimize freight and handling costs. As a result, Costco eliminates many of the costs associated with multiple step distribution channels, which include purchasing from distributors as opposed to manufacturers, use of central receiving, storing and distributing warehouses, and storage of merchandise in locations off the sales floor. By providing this more cost-effective means of distributing goods, Costco meets the needs of business customers who otherwise would pay a premium for small purchases and for the distribution services of traditional wholesalers, and who cannot otherwise obtain the full range of their product requirements from any single source. In addition, these business members will often combine personal shopping with their business purchases. The cost savings on brand name and selected private label merchandise are the primary motivation for individuals shopping for their personal needs. Costco's merchandise selection is designed to appeal to both the business and consumer requirements of its members by offering a wide range of nationally branded and selected private label products, often in case, carton or multiple-pack quantities, at attractively low prices.

Because of its high sales volume and rapid inventory turnover, Costco generally has the opportunity to receive cash from the sale of a substantial portion of its inventory at mature warehouse operations before it is required to pay all its merchandise vendors, even though Costco takes advantage of early payment terms to obtain payment discounts. As sales in a given warehouse increase and inventory turnover becomes more rapid, a greater percentage of the inventory is financed through payment terms provided by vendors rather than by working capital.

Costco's typical warehouse format averages approximately 139,000 square feet. Floor plans are designed for economy and efficiency in the use of selling space, in the handling of merchandise and in the control of inventory. Because shoppers are attracted principally by the availability of low prices on brand name and selected private label goods, Costco's warehouses need not be located on prime commercial real estate sites or have elaborate facilities.

By strictly controlling the entrances and exits of its warehouses and using a membership format, Costco has been able to limit inventory losses to approximately two-tenths of one percent of net sales'well below those of typical discount retail operations. Losses associated with dishonored checks have also been minimal and bank information from business members is verified prior to establishing a check purchase limit. Members are identified and prevented from cashing checks at the point of sale when they have presented dishonored checks to Costco.

Costco's merchandising strategy is to provide the customer with a broad range of high quality merchandise at prices consistently lower than could be obtained through traditional wholesalers, discount retailers or supermarkets. An important element of this strategy is to carry only those products on which Costco can provide its members significant cost savings.

Competition

The Company operates in the rapidly changing and highly competitive merchandising industry. When The Price Company pioneered the membership warehouse club concept in 1976, the dominant companies selling comparable lines of merchandise were department stores, grocery stores and traditional wholesalers. Since then, new merchandising concepts and aggressive marketing techniques have led to a more intense and focused competitive environment. Wal-Mart has become the largest retailer in the United States (and the world) and has expanded further into various food merchandising formats. Target has also emerged as a significant retail competitor. Approximately 1,050 warehouse club locations exist across the U.S. and Canada, including the 370 warehouses operated by the Company in North America; and every major metropolitan area has one, if not several, club operations. Low-cost operators selling a single category or narrow range of merchandise, such as Home Depot, Office Depot, PetSmart, Toys-R-Us, Circuit City and Barnes & Noble, have significant market share in their respective categories. New forms of retailing involving modern technology are boosting sales in certain stores, while home shopping and electronic commerce over the Internet is becoming increasingly popular. Likewise, in the institutional food business, companies such as Smart & Final, which operates predominately in California, Washington, Oregon, Florida and Arizona, are capturing an increasingly greater share of the institutional food business from wholesale operators and others.



   Company Address: 999 Lake Drive Issaquah 98027 WA
   Company Phone Number: 313-8100   Stock Exchange / Ticker: NASDAQ COST


   

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Dividend

Costcos Bold Dividend Increase Signals Retail Resilience and Commitment to Shareholder Value,

Published Wed, Apr 16 2025 8:15 PM UTC

Costco s Bold Dividend Increase Signals Retail Resilience and Commitment to Shareholder ValueISSAQUAH, Wash. April 16, 2025 Costco Wholesale Corporation (NASDAQ: COST) recently made...

Management Announcement

Costcos Stellar Sales and Shareholder Returns Illuminate Retail Resilience in 2025,

Published Wed, Apr 9 2025 8:15 PM UTC

Costco s Sales Surge: A Model of Resilience in Uncertain TimesIn an economy that has experienced disruption and upheaval, few companies have managed to navigate the turbulent waters as effectively as Costco Wholesale Corporation. The retail giant reported impressive March sales results that underscore its financial stability and operational resilience, making it a standout p...

Dividend

Costco Wholesale Corporations Strong Performance Fuels Dividend Announcement and Stock Surge

Published Thu, Jan 23 2025 9:15 PM UTC

In a recent press release, Costco Wholesale Corporation (Nasdaq: COST) declared a quarterly cash dividend of $1.16 per share, underscoring its steady financial health and commitment to shareholder returns. This dividend is set to be paid on February 21, 2025, to shareholders recorded by the close of business on February 7, 2025.This announcement follows an impressive period ...

Management Announcement

Costcos Robust Sales Growth Amid Economic Fluctuations Illustrates Its Resilience and Workforce Efficiency

Published Wed, Jan 8 2025 9:15 PM UTC

Costco Wholesale Corporation continues to showcase its remarkable resilience in a challenging retail landscape, reporting net sales of $27.52 billion for December 2024, marking a substantial increase of 9.9% from $25.03 billion in December 2023. This performance underscores the company?s strategic positioning and its ability to attract and retain customers even in fluctuatin...

Product Service News

Costco Reports Steady Sales Growth Amidst Challenging Retail Environment

Published Wed, Dec 4 2024 9:15 PM UTC

Costco Wholesale Corporation, the esteemed operator of wholesale membership clubs, has revealed its sales performance for the month of November 2024, reporting net sales of $21.87 billion. This figure marks an increase of 5.6% compared to the same period in the previous year, when net sales stood at $20.71 billion. The retail month concluded on December 1, 2024, indicating c...







Costco Wholesale's Segments
United States Operations    72.84 % of total Revenue
Canada Operations    13.02 % of total Revenue
Other International Operations    14.15 % of total Revenue
Foods and Sundries    39.41 % of total Revenue
Non-Foods    27.5 % of total Revenue
Fresh Foods    13.87 % of total Revenue
Ancillary and Other Businesses    17.35 % of total Revenue
Net Sales    98.13 % of total Revenue





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