Costco Wholesale Corporation reported strong financial results for the third quarter of fiscal year 2025, which ended May 11, surpassing Wall Street expectations for both earnings and revenue. Net income rose to $1.90 billion, or $4.28 per diluted share, while revenue increased 8% to $63.20 billion.
Comparable sales grew 5.7% globally, or 6% excluding gas and foreign exchange impacts, fueled by a 5.2% increase in worldwide shopping frequency. Membership fee revenue, a key driver of profitability, increased 10% to $1.24 billion, partly benefiting from the membership fee increase implemented in September 2024.
The company's membership base continued to expand, with paid household members growing 6.8% year-over-year to 79.6 million, and Executive memberships increasing 9% to 37.6 million. Gross margin improved by 41 basis points to 11.25%. However, profitability was impacted by a $130 million LIFO charge and a $40 million expense for increased employee vacation days.
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