Costco Wholesale Corp /NEW (COST) is a multinational corporation which operates a chain of membership-only warehouse clubs. Founded by James Sinegal and Jeffrey Brotman, Costco opened its first warehouse in Seattle, Washington, on September 15, 1983. Its headquarters are currently located in Issaquah, Washington, adjacent to Seattle.
The company's name derives from the city of its founding, Kirkland, Washington, where the "Costco" branding was first introduced in 1996. Since then, the company has grown significantly and operates 807 warehouses worldwide, as of 2021, including 558 in the United States and Puerto Rico, and a substantial footprint in Canada, United Kingdom, Australia, Mexico, Japan, and beyond.
Costco Wholesale Corp /NEW is known for offering its members low prices on a limited selection of nationally-branded and privates label products in a wide range of merchandising categories. This strategy, known as the “treasure hunt” shopping experience, consists of filling the warehouses with a variety of products, including many unexpected items, which changes frequently to create a sense of novelty.
In addition to selling merchandise, Costco also provides various ancillary and service operations, including fuel stations, pharmacy, optical dispensing, one-hour photo centers, food courts, travel and car-buying services, among others. It also operates an online retail platform offering both items available in warehouses, and products exclusively available online, expanding its reach beyond just physical outlets.
Costco Wholesale Corp /NEW also has its own store-brand products, known as Kirkland Signature, which are formulated to be of equal or better quality than national brands, providing members with an alternative to traditional branded products.
In 2021, Costco was ranked #10 on the Fortune 500 rankings of the largest United States corporations by total revenue, illustrating the company's success and steady growth over the years. The company's annual revenue was $166+ billion in Fiscal Year 2021, with a net income of $5+ billion. Costco's success is attributed to its commitment to providing members with quality goods, at the most affordable prices possible, and its innovative strategies to enhance members' shopping experiences. It continues to grow its footprint globally, eagerly embracing digital transformation while maintaining the treasure hunt allure that sets it apart from other retail giants.
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Costco announced it received $184 million in tariff refunds in its fourth quarter, with the majority reinvested to lower prices for members on various everyday items, including food, beverages, and non-food categories. CEO Ron Vachris and CFO Gary Millerchip emphasized that this reinvestment was aimed at providing value back to members, and the company expects to receive and reinvest a similar amount in future quarters. These tariff refunds are considered non-recurring and will continue to impact financial results into fiscal year 2027.
This Benzinga report summarizes the past week's stock performance, highlighting the influence of AI enthusiasm and rising oil prices. It details bullish cases for Costco, Greenland-linked stocks, and KB Home, which all beat analyst expectations. Conversely, bearish takes are presented for McDonald's due to investment concerns, AppLovin Corp. as one of the S&P 500's worst performers, and Viking Therapeutics following plans for public offerings.
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