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Costco Wholesale Corporation operates membership warehouses and e-commerce sites, offering a limited selection of nationally-branded and private-label products at low prices to drive high sales volumes and rapid inventory turnover. The company categorizes its offerings into core merchandise categories, which include foods and sundries, non-foods, and fresh foods. Additionally, Costco provides expanded products and services through warehouse ancillary operations, such as gasoline, pharmacy, optical, food court, hearing aids, and tire installation, as well as other businesses like e-commerce, business centers, and travel services .
- Foods and Sundries - Offers a wide range of grocery items, including packaged foods, beverages, and household essentials.
- Non-Foods - Provides a variety of products such as electronics, apparel, and home goods.
- Warehouse Ancillary and Other Businesses - Includes services like gasoline, pharmacy, optical, food court, hearing aids, tire installation, e-commerce, business centers, and travel services.
- Fresh Foods - Sells perishable items including meat, produce, and bakery products.
| Name | Position | External Roles | Short Bio | Start Date |
|---|---|---|---|---|
Ron M. Vachris ExecutiveBoard | President and CEO | None | Ron M. Vachris has been with Costco for over 28 years, holding various management and executive roles. He became CEO on January 1, 2024, and has been a director since February 2022. | January 1, 2024 |
Caton Frates Executive | EVP, COO, Southwest Division | None | Caton Frates has been with Costco for over 25 years and became EVP, COO, Southwest Division, in 2022. He previously served as SVP, Los Angeles Region. | May 2022 |
Claudine E. Adamo Executive | EVP, Merchandising | None | Claudine E. Adamo has been an executive officer since 2022. She previously served as SVP, Non-Foods, and VP, Non-Foods. | February 2022 |
Gary Millerchip Executive | EVP, Chief Financial Officer | None | Gary Millerchip joined Costco in February 2024 as EVP and became CFO on March 15, 2024. Previously, he was CFO at Kroger and CEO of Kroger Personal Finance. | March 15, 2024 |
Javier Polit Executive | EVP, Chief Information and Digital Officer | None | Javier Polit joined Costco in 2023. He previously held CIO roles at Mondelez, Procter & Gamble, and Coca-Cola. | 2023 |
Jim C. Klauer Executive | EVP, COO, Northern Division | None | Jim C. Klauer has been EVP, COO, Northern Division, since 2018. He previously served as SVP, Non-Foods and E-commerce Merchandise. | 2018 |
John Sullivan Executive | EVP, General Counsel and Corporate Secretary | None | John Sullivan has been General Counsel since 2016 and Corporate Secretary since 2010. He has been with Costco for over 22 years. | 2016 |
Patrick J. Callans Executive | EVP, Administration | None | Patrick J. Callans has been EVP, Administration, since 2019. He previously served as SVP, Human Resources and Risk Management. | 2019 |
Pierre Riel Executive | EVP, COO, International Division | None | Pierre Riel became EVP, COO, International Division, in 2022. He previously served as SVP, Country Manager, Canada, and SVP, Eastern Canada Region. | 2022 |
Russ D. Miller Executive | SEVP, U.S. Operations | None | Russ D. Miller has been with Costco for over 25 years and became SEVP, U.S. Operations, in May 2022. He previously served as EVP, COO, Southwest Division and Mexico. | May 4, 2022 |
Teresa Jones Executive | EVP, Global Depots and Traffic | None | Teresa Jones was promoted to EVP, Global Depots and Traffic, in 2024. She previously served as SVP and VP of Depot Operations. | 2024 |
Yoram B. Rubanenko Executive | EVP, COO, Eastern Division | None | Yoram B. Rubanenko has been EVP, COO, Eastern Division, since 2021. He previously served as SVP and General Manager, Southeast Region. | 2021 |
Hamilton E. James Board | Chairman of the Board | Chairman of Jefferson River Capital | Hamilton E. James has been a director since 1988 and became Chairman of the Board in 2017. He is also Chairman of Jefferson River Capital and previously served as Executive Vice Chairman of Blackstone. | August 2017 |
Helena B. Foulkes Board | Director | Board Member at Skillsoft, Follett Higher Education, PM Pediatrics Care, Harry's Inc. | Helena B. Foulkes joined the board in 2023. She is a former CEO of Hudson's Bay Company and held senior roles at CVS Health. | August 16, 2023 |
Jeffrey S. Raikes Board | Director | Co-founder of Raikes Foundation | Jeffrey S. Raikes has been a director since 2008. He is the co-founder of the Raikes Foundation and a former CEO of the Bill & Melinda Gates Foundation. | December 2008 |
John W. Stanton Board | Director | Chairman of Trilogy International Partners, Trilogy Equity Partners, and First Avenue Entertainment | John W. Stanton has been a director since 2015. He is also the Chairman of Trilogy International Partners, Trilogy Equity Partners, and First Avenue Entertainment (owner of the Seattle Mariners). | October 2015 |
Kenneth D. Denman Board | Director | General Partner at Sway Ventures; Board Member at VMware and Motorola Solutions | Kenneth D. Denman has been a director since 2017. He is a General Partner at Sway Ventures and serves on the boards of VMware and Motorola Solutions. | March 2017 |
Maggie Wilderotter Board | Director | Chairman of DocuSign; Board Member at Sana Biotechnology, Fortinet, Sonoma Biotherapeutics, Tanium | Maggie Wilderotter has been a director since 2015. She is the Chairman of DocuSign and serves on multiple boards, including Sana Biotechnology and Fortinet. | October 2015 |
Sally Jewell Board | Director | Global Board Member at The Nature Conservancy; Chair of the Board at Symetra Financial | Sally Jewell has been a director since 2020. She is a former U.S. Secretary of the Interior and CEO of REI. | January 2020 |
Susan L. Decker Board | Director | CEO of Raftr, Inc.; Board Member at Berkshire Hathaway, Vail Resorts, Vox Media, Automattic, Chime Financial | Susan L. Decker has been a director since 2004. She is the CEO of Raftr, Inc., and serves on multiple boards, including Berkshire Hathaway and Vail Resorts. | October 2004 |
Richard A. Galanti | Retired (Former CFO) | None | Richard A. Galanti retired as CFO on March 15, 2024, and fully retired from Costco on January 30, 2025, after serving as CFO for over 30 years. | N/A |
- With only 26 net new warehouses planned for fiscal 2025 and a shift towards international expansion, can you elaborate on the reasons behind the slowdown in U.S. warehouse growth and how this might impact your market share in the domestic market?
- Given that e-commerce continues to be marginally less profitable than traditional in-warehouse shopping, how do you plan to address the profitability gap as digital sales grow, and what specific measures are you taking to improve e-commerce margins?
- While you have expressed a desire to drive greater SG&A leverage, how do you reconcile this with the ongoing investments in employee wages, and what steps are you taking to ensure that margin pressures do not adversely affect profitability?
- Considering the potential disruptions from port strikes and fluctuations in ocean freight rates, what contingency plans are in place to mitigate supply chain risks, and how might these challenges influence your inventory levels and margin outlook?
- In light of increasing promotional activity and investments in pricing by competitors in the grocery sector, how do you plan to maintain your pricing advantage without compromising margins, and are there specific areas where you see heightened competitive pressures?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Among the significant general merchandise retail competitors in the U.S.. | |
Among the significant general merchandise retail competitors in the U.S.. | |
Among the significant general merchandise retail competitors in the U.S.. | |
Among the significant general merchandise retail competitors in the U.S.. | |
Sam's Club | A competing warehouse club operated by Walmart in the U.S.. |
A competing warehouse club in the U.S.. |
Recent developments and announcements about COST.
Financial Reporting
Earnings Call
Costco recently held its First Quarter 2025 Earnings Call, where several key points were discussed. The company reported net income for the first quarter at $1.798 billion, or $4.04 per diluted share, which is an increase from the previous year's $1.589 billion, or $3.58 per diluted share. This growth was partly due to a tax benefit related to stock-based compensation . Net sales for the quarter were $60.99 billion, marking a 7.5% increase from the previous year .
Costco's U.S. comparable sales rose by 5.2%, or 7.2% when excluding gas deflation, while international sales also showed positive growth . E-commerce sales were up 13%, reflecting strong digital engagement and improvements in app functionality .
Management provided forward guidance, indicating plans to open 29 new warehouses during fiscal year 2025, with 10 of these outside the U.S. . They also highlighted the success of their e-commerce and logistics operations, with Costco Logistics completing nearly 1 million deliveries in Q1 .
Significant comments on market conditions included the impact of foreign exchange and gas price deflation on sales, as well as the competitive landscape in retail pharmacy . Management emphasized their focus on maintaining value for members through strategic investments and operational efficiencies .
Analyst questions touched on topics such as traffic growth, e-commerce penetration, and competitive impacts. Management responded by highlighting their strategic initiatives and the strength of their membership model .
Overall, Costco's earnings call reflected a strong performance in the first quarter of fiscal 2025, with positive growth across various segments and a strategic focus on expanding their market presence and enhancing member value.
Earnings Report
Costco Wholesale Corporation has released its first quarter fiscal year 2025 operating results. Net sales for the quarter increased by 7.5% to $60.99 billion compared to the same period last year. The comparable sales growth was 5.2% in the U.S., 5.8% in Canada, and 4.7% in other international markets, with a total company growth of 5.2%. E-commerce sales saw a significant increase of 13.0%. The net income for the quarter was $1,798 million, or $4.04 per diluted share, which includes a tax benefit of $100 million related to stock-based compensation .