Costco Wholesale Corporation – Q1 2014 Earnings Report

  • Report Date:December 2013
  • Ticker Symbol: COST – Nasdaq Global select
  • Company Name: Costco Wholesale Corp.
  • Reporting Period: Q1 2014 (ending Nov 24, 2013)


  • Net sales increased by 5% in Q1-2014, from $23.20B in Q1-2013 to $24.47B
  • Membership Fee revenue increased 7.4% this quarter from $511M to $549M
  • Total Revenue for the company improved by 5.5%, from $23.7B to $25.01B
  • Net Income for the quarter rose by 2.16% from the same period last year, up from $416M ($0.95/Diluted share) to $425M ($0.96/Diluted share)
  • The company's Gross Margins were up by 13 basis points coming in at 10.81%


Costco continues its ambitious IT modernization effort which accounted to an increase in SG&A expenses. This trend is expected to flow through to the next several quarters as the company's new systems stabilize.


The company spent $572 in CapEx this quarter, with the total CapEx outlay expected to be approximately $2.4B for the year (compared to $2.1B last year).

During the quarter, Costco opened 13 new locations globally – 9 in the U.S.; 1 in Alberta, Canada; 1 in Monterrey, Mexico; and 2 in Australia. Additionally, one store in Mexico was closed (temporarily pending renovation as a result of hurricane Manuel).