Costco's Sizzling Start to Fiscal 2025: Record Sales, New Warehouses, and Sustainability Milestones
Costco Wholesale Corporation has kicked off its fiscal 2025 with a bang, reporting impressive sales figures, expanding its warehouse network, and making significant strides in sustainability. During its First Quarter Fiscal 2025 Conference Call on December 12, the company's leadership provided an update on its performance, highlighting key achievements that reflect the strength of its business.
One of the most notable highlights from the quarter was the opening of seven new warehouses, including one relocation and six net new buildings, with four of them located outside the US. This brings the total number of warehouses to 897, with plans to open a further 26 new facilities during the fiscal year, including three relocations.
Costco's growth is not limited to its physical presence; it has also set records in various business areas. In the US, the company's bakery division sold an impressive 4.2 million pies over the three days preceding Thanksgiving, setting a new record. The same period saw a remarkable 274,000 whole pizzas sold at Costco's US food courts, a 21% increase from the previous year.
The company's pharmacy business has also shown significant growth, with prescription sales exceeding 19% for the quarter and setting new volume records. Moreover, Costco Logistics completed nearly one million deliveries in Q1, surpassing 196,000 deliveries last week alone, which was a new record as well. The vast majority of these deliveries were made within four days from the time members ordered their merchandise online.
Costco's Chief Financial Officer, Gary Millerchip, highlighted the company's financial performance during the quarter, stating that net income came in at $1.798 billion or $4.04 per diluted share, up from $1.589 billion or $3.58 per diluted share in the first quarter last year. This year's results included a tax benefit of $100 million or $0.22 per diluted share related to stock-based compensation.
Costco's commitment to sustainability has also been recognized with the release of its annual update to the Costco sustainability commitments, which provides a comprehensive review of the progress made towards its sustainability objectives. The report highlights various initiatives and achievements in this area, providing stakeholders with valuable insights into the company's dedication to environmental responsibility.
As Costco approaches its Annual Shareholders Meeting in January, these results demonstrate the company's continued growth and commitment to excellence across various business areas. The impressive performance of its employees worldwide has been instrumental in achieving these milestones, showcasing their dedication to providing an outstanding experience for Costco members.
Costco's remarkable start to fiscal 2025 underscores the company's strength as a leader in the retail industry. Its focus on sustainability and commitment to delivering exceptional results have cemented its position among consumers and investors alike. As the company looks ahead to the rest of the fiscal year, these achievements provide a solid foundation for continued growth and success.
