Costco Wholesale Corporation (COST)

Costco's stock price reached an all-time high of $1,078.23 on February 12, 2025. The company consistently reports monthly sales results and quarterly earnings, with June sales showing an 8% year-over-year growth. Costco announced a quarterly cash dividend on July 16, 2025. In May 2025, Costco partnered with Affirm to offer flexible payment options and in June 2025, partnered with Maplebear Inc. to provide a US$10 credit per month for Instacart deliveries. Costco has continued its aggressive store opening pace, including opening its largest warehouse in Texas in July 2025, and announced plans to establish a Global Capability Centre in Hyderabad, India. Recent insider trading activity includes a director gifting shares and an executive vice president selling shares in July 2025. Analysts generally rate Costco as a "Moderate Buy."

Costco's operations experience a material seasonal impact, with increased net sales and earnings during the winter holiday season. Inventory levels also exhibit distinct seasonal and cyclical variations, with sharp increases to peak levels by late 2024 before a slight decrease by mid-2025. This suggests that demand for Costco's products and services generally peaks around the holiday period, leading to higher sales and the need for increased inventory.

Costco operates as a global membership-only warehouse club in the retail sector, focusing on bulk quantities of branded and private-label products at competitive prices. The company generates profits from membership fees. Its major product categories include groceries and sundries, fresh foods, non-food merchandise (hardlines & softlines), and private label items under the Kirkland Signature brand. Costco also provides services such as gasoline stations, optical laboratories, pharmacies, and travel services. Costco Wholesale Industries operates manufacturing businesses including food packaging, meat processing, and jewelry distribution.

As of July 2025, Costco operates 905 warehouses worldwide. In North America, there are 624 in the United States (including Puerto Rico), 109 in Canada, and 41 in Mexico. In Asia, there are 37 in Japan, 19 in South Korea, 14 in Taiwan, and 7 in China. In Europe, there are 29 in the United Kingdom, 5 in Spain, 2 in France, 1 in Iceland, and 2 in Sweden. In Oceania, there are 15 in Australia and 1 in New Zealand. Costco also operates e-commerce websites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan, and Australia.

Costco maintains a strong brand reputation built on loyalty, high quality, and customer service, fostering a loyal customer base. The company's commitment to stocking high-quality goods at competitive prices contributes to strong organizational commitment among its members, with high membership renewal rates. Potential negative publicity from product liability claims could affect member trust and renewal rates. A news article in July 2025 about a "Lululemon vs Costco: the fashion copycat fight," touches on brand perception, but it does not indicate a significant negative impact on Costco's overall reputation.

Costco's ownership is primarily dominated by institutional shareholders, owning approximately 67.18% of the company, with 0.84% by Costco insiders, and 31.98% by retail investors. The largest individual shareholder is Vanguard Group Inc., owning 9.62% of the shares. Other major institutional owners include BlackRock, Inc., State Street Corp, Geode Capital Management, Llc, Fidelity Investments (FMR), Morgan Stanley, and Bank of America Corp. Top individual insider shareholders include Craig Jelinek, Patrick Callans, and Richard Galanti.