Costco Wholesale Corp. (NASDAQ:COST)

The financial data over the indicated periods reveals several key trends and patterns in revenue, costs, margins, and profitability metrics.

Net Sales

Net sales demonstrate a general upward trajectory with notable seasonality, peaking consistently in periods corresponding with the second and fourth quarters of fiscal years, particularly visible in August and November dates. There are sharp sales increases observed in the quarters ending September 1, 2019; August 29, 2021; August 28, 2022; and September 3, 2023, reflecting periods of heightened revenue, possibly driven by seasonal shopping trends or promotional cycles.

Merchandise Costs

Merchandise costs mirror net sales trends closely, increasing in the same peak periods with values rising substantially during quarters of higher sales volume. The costs consistently remain about 88% to 90% of net sales, indicating a stable cost structure despite growing revenue. This stable relationship suggests a maintained pricing and procurement strategy.

Gross Margin

Gross margin increases in absolute terms alongside the ramp-up in net sales, with significant jumps during peak sales periods. While the margin in monetary terms has grown, the relative gross margin percentage appears to maintain a fairly steady proportion of net sales given the parallel increase of merchandise costs, indicating consistent profitability at the gross level.

Membership Fees

Membership fees show steady growth throughout the periods, rising from under $800 million in 2018 to over $1.2 billion in 2025. This upward trend points to expanding membership base or increased fee revenues, contributing positively to overall operating performance and strengthening recurring revenue streams.

Selling, General and Administrative Expenses (SG&A)

SG&A expenses increase in nominal terms consistent with expanding operations and revenue growth. The growth in these expenses is less volatile compared to sales, suggesting controlled overhead and administrative costs despite business scale expansion. The increments correspond to increased investment in operational capabilities or inflationary impact.

Operating Income

Operating income exhibits a robust increasing pattern, closely linked to growth in sales, gross margin, and membership fees, reaching over $3 billion in some recent periods. Peaks occur in quarters coinciding with high sales, indicating efficient conversion of revenues into operational profits and the firm’s ability to leverage scale to generate higher earnings.

Interest Expense

Interest expense remains relatively stable with minor fluctuations, generally below $60 million per quarter, indicating limited variability in debt servicing costs or controlled borrowing levels.

Interest Income and Other, Net

Interest and other income show moderate volatility, with notably higher values in later periods reaching up to $238 million, which could reflect increased investments, better cash management, or other non-operating income sources contributing positively to overall earnings.

Other Income (Expense)

Other income/expense reveals periods of negative and positive values, with recent quarters showing larger positive spikes up to $182 million, enhancing total income before taxes. This item contributes irregular but occasionally significant non-operating gains.

Income Before Income Taxes

Income before taxes grows in line with operating income and supplemental income streams, with recent quarters nearing and exceeding $3 billion. Growth in this metric aligns with improved operational efficiency and ancillary income contributions.

Provision for Income Taxes

Tax provisions increase in absolute terms following rising pre-tax income but vary in proportion, suggesting fluctuations in effective tax rates or changes in tax planning strategies. Spikes larger than $800 million in tax provision occur in the highest income quarters.

Net Income Including Noncontrolling Interests

Net income follows an increasing trend consistent with pre-tax income less taxes. Peaks in net income correspond to high sales and operating income quarters, with the highest net income exceeding $2.3 billion. The stability in these figures reflects successful management of costs and effective tax strategies.

Net Income Attributable to Costco

Excluding noncontrolling interests, net income attributable to the company closely follows the consolidated net income trend, confirming the controlled influence of noncontrolling interests on overall profitability and consistent shareholder earnings growth.

Overall, the data indicates continued business growth characterized by rising sales, stable gross margins, expanding membership fee income, controlled SG&A expense growth, and increasing operating and net income. Seasonal patterns significantly influence revenue and related metrics, with predictable peaks in line with historical shopping cycles. Interest expenses remain low relative to earnings, and other income contributes periodic boosts to profitability. The tax provisions, while variable, have not notably diminished net income growth. These trends collectively point toward sustained operational efficiency and profitability enhancement over the analyzed periods.