Costco Wholesale Corporation stock research
FY2025 Q1
Costco Wholesale (COST) Gross Margin — Quarter Ended Nov 24, 2024
Revenue and gross profit both increased compared to the preceding quarter and the same quarter one year earlier. The gross margin improved, reflecting a favorable relationship between cost of revenue and revenue.
Gross margin takeaway
Quarter ended Nov 24, 2024 · FY2025 Q1
Revenue and gross profit both increased compared to the preceding quarter and the same quarter one year earlier. The gross margin improved, reflecting a favorable relationship between cost of revenue and revenue.
- The strongest observable margin driver is the improvement in gross margin, which was higher than both the prior quarter and the year-ago quarter. This change is the most direct measure of margin performance.
- Gross margin improved sequentially and year-over-year. Revenue and gross profit were higher in both comparisons, while cost of revenue also increased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.9%
Gross profit
$8.0B
Revenue
$62.2B
Cost of revenue
$54.1B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| Nov 26, 2023 | $57.8B | $7.3B | $50.5B | 12.7% |
| Feb 18, 2024 | $58.4B | $7.3B | $51.1B | 12.5% |
| May 12, 2024 | $58.5B | $7.3B | $51.2B | 12.5% |
| Nov 24, 2024 | $62.2B | $8.0B | $54.1B | 12.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 12, 2024
+0.4 pts
Year-over-year change
Nov 26, 2023
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the improvement in gross margin, which was higher than both the prior quarter and the year-ago quarter. This change is the most direct measure of margin performance.
Gross margin improved sequentially and year-over-year. Revenue and gross profit were higher in both comparisons, while cost of revenue also increased.
Monitor the trend of gross margin in future quarters to assess whether the current improvement is sustained.