Costco Wholesale Corporation stock research
FY2024 Q1
Costco Wholesale (COST) Gross Margin — Quarter Ended Nov 26, 2023
Revenue and cost of revenue both increased, but gross profit rose more, resulting in an improved gross margin. Compared with the prior quarter and the same quarter a year ago, gross margin was higher.
Gross margin takeaway
Quarter ended Nov 26, 2023 · FY2024 Q1
Revenue and cost of revenue both increased, but gross profit rose more, resulting in an improved gross margin. Compared with the prior quarter and the same quarter a year ago, gross margin was higher.
- Gross margin improvement was driven by revenue growing at a faster pace than cost of revenue, both sequentially and compared to the same period last year.
- Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.7%
Gross profit
$7.3B
Revenue
$57.8B
Cost of revenue
$50.5B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+0.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Feb 12, 2023 | $55.3B | $6.8B | $48.4B | 12.4% |
| May 7, 2023 | $53.6B | $6.5B | $47.2B | 12.1% |
| Nov 26, 2023 | $57.8B | $7.3B | $50.5B | 12.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 7, 2023
+0.6 pts
Year-over-year change
Nov 20, 2022
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improvement was driven by revenue growing at a faster pace than cost of revenue, both sequentially and compared to the same period last year.
Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was also higher.
Monitor the company's cash flow from operations, which increased substantially in the current period according to the filing.