On September 26th Costco Wholesale Corporation (COST) posted results for Q4 and FY 2024 ending September 1st 2024. The Company exceeded the consensus for earnings but was light on sales. COSTCO as the leading club chain serves as a bellwether for omni-channel warehouse in-store and on-line buying. The Company is a barometer of consumer confidence, offering groceries, clothing, household necessities in bulk in addition to discretionary appliances, recreational, luxury and electronic items.
For the most recent quarter, the Company earned $2,354 million on revenue (including fuel and membership fees) of $79,697 million with a diluted EPS of $5.39. For the corresponding Q4 of FY 2023 ending September 3rd, Costco earned $2,160 million on equivalent revenue of $78,939 million with a diluted EPS of $4.86.
For the most recent quarter revenue was 1.0 percent higher than in Q4 FY 2023 and net earnings were up by 9.0 percent. Gross margin for Q4 FY 2024 was 11.0 percent, compared to 10.6 percent for the corresponding quarter in FY 2023. Operating income attained 8.9 percent, up from 8.8 percent in Q4 FY 2023, despite increased freight, transport, wages and utilities.
For FY 2024, the Company earned $7,367 million on revenue (including fuel and membership fees) of $254,453 million with a diluted EPS of $16.56. For corresponding FY 2023 ending September 3rd, Costco earned $6,297 million on equivalent revenue of $242,290 million with a diluted EPS of $14.16.
Comparable global same-store sales for Q4 2024 (excluding fuel and foreign exchange) rose to 6.9 percent compared to Q3 2023. U.S. same store sales were up 6.3 percent; Canada by 7.9 percent and the Other International category, by 9.5 percent. E-Commerce was up by 19.5 percent.
Costco raised membership fees as expected in Q4 with revenue attaining $1,512 million. This was below analysts’ forecast of $1,550 million but higher than $1,509 in Q4 2023. At the end of FY 2024 there were 137 million members with 25.9 percent or 35.4 million at the Executive Level accounting for 74 percent of sales.
On September 1st Costco posted total assets of $69,831 million. Long-term debt and lease obligations attained $10,745 million. Costco had an intraday market capitalization of $402,730 million on September 26. COST trades with a forward P/E of 51.6 and has ranged over the past fifty-two weeks from $540.27 to $923.83 with a 50-day moving average of $867.55. Costco closed pre-release at $901.44 on September 26th but fell in after-hours trading, post-release by 1.1 percent to $891.47 at 18H00. Twelve-month trailing operating margin was 3.8 percent and profit margin 2.8 percent. The Company generated a return on assets of 8.4 percent and 31.6 percent on equity.
At the end of the recent completed quarter, Costco operated 890 warehouses. There are 614 in the U.S; 108 in Canada; 40 in Mexico; 33 in Japan; 29 in the U.K. and 66 others in seven other nations among the E.U., Asia and Australia. This was a net increase of 12 warehouses during Q4.