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Costco Wholesale Gross Margin %

: 12.67% (As of Aug. 2021)
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Gross Margin % is calculated as gross profit divided by its revenue. Costco Wholesale's Gross Profit for the three months ended in Aug. 2021 was $7,942 Mil. Costco Wholesale's Revenue for the three months ended in Aug. 2021 was $62,675 Mil. Therefore, Costco Wholesale's Gross Margin % for the quarter that ended in Aug. 2021 was 12.67%.


The historical rank and industry rank for Costco Wholesale's Gross Margin % or its related term are showing as below:

NAS:COST' s Gross Margin % Range Over the Past 10 Years
Min: 12.42   Med: 13   Max: 13.32
Current: 12.88

12.42
13.32

During the past 13 years, the highest Gross Margin % of Costco Wholesale was 13.32%. The lowest was 12.42%. And the median was 13.00%.

NAS:COST's Gross Margin % is ranked lower than
86% of the 58 Companies
in the Retail - Defensive industry.

( Industry Median: 26.16 vs. NAS:COST: 12.88 )

Costco Wholesale had a gross margin of 12.67% for the quarter that ended in Aug. 2021 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Costco Wholesale was -0.60% per year.


Costco Wholesale Gross Margin % Historical Data

The historical data trend for Costco Wholesale's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Costco Wholesale Annual Data
Trend Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.29 13.01 12.98 13.09 12.88

Costco Wholesale Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.08 13.31 12.71 12.95 12.67

Competitive Comparison

For the Discount Stores subindustry, Costco Wholesale's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Costco Wholesale Gross Margin % Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Costco Wholesale's Gross Margin % falls into.



Costco Wholesale Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Costco Wholesale's Gross Margin for the fiscal year that ended in Aug. 2021 is calculated as

Gross Margin % (A: Aug. 2021 )=Gross Profit (A: Aug. 2021 ) / Revenue (A: Aug. 2021 )
=25245 / 195929
=(Revenue - Cost of Goods Sold) / Revenue
=(195929 - 170684) / 195929
=12.88 %

Costco Wholesale's Gross Margin for the quarter that ended in Aug. 2021 is calculated as


Gross Margin % (Q: Aug. 2021 )=Gross Profit (Q: Aug. 2021 ) / Revenue (Q: Aug. 2021 )
=7942 / 62675
=(Revenue - Cost of Goods Sold) / Revenue
=(62675 - 54733) / 62675
=12.67 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Costco Wholesale  (NAS:COST) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Costco Wholesale had a gross margin of 12.67% for the quarter that ended in Aug. 2021 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Costco Wholesale Gross Margin % Related Terms

Thank you for viewing the detailed overview of Costco Wholesale's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Costco Wholesale Business Description

Costco Wholesale logo
Industry
Consumer Defensive » Retail - Defensive NAICS : 452319 SIC : 5331
Address
999 Lake Drive, Issaquah, WA, USA, 98027
The leading warehouse club, Costco has 795 stores worldwide (at the end of fiscal 2020), with most sales derived in the United States (73%) and Canada (13%). It sells memberships that allow customers to shop in its warehouses, which feature low prices on a limited product assortment. Costco mainly caters to individual shoppers, but roughly 20% of paid members carry business memberships. Food and sundries accounted for 42% of fiscal 2020 sales, with hardlines 17%, ancillary businesses (such as fuel and pharmacy) nearly 17%, fresh food 14%, and softlines 10%. Costco's warehouses average around 146,000 square feet; over 75% of its locations offer fuel. About 6% of Costco's global sales come from e-commerce (excluding same-day grocery and various other services).
Executives
Denman Kenneth D director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: DENMAN KENNETH D a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
James Hamilton E director, officer: Chairman of the Board C/O COSTCO WHOLESALE CORP 999 LAKE DRIVE ISSAQUAH WA 98027
Munger Charles T director 355 S GRAND AV 34TH FL LOS ANGELES CA 90071
Stanton John W director 3650 131ST AVE SE #400 WESTERN WIRELESS CORP BELLEVUE WA 98006
Jewell Sarah Mr Sally director 1411 E MISSION AVE SPOKANE WA 99202
Decker Susan L director C/O YAHOO INC 701 FIRST AVE SUNNYVALE CA 94089
Wilderotter Mary Agnes director 115 ALPINE TERRACE OAKLAND CA 94618
Portera Joseph P officer: Executive VP 999 LAKE DRIVE ISSAQUAH WA 98027
Moulton Paul G officer: Executive VP 999 LAKE DRIVE ISSAQUAH WA 98027
Murphy James P. officer: Executive VP 999 LAKE DRIVE ISSAQUAH WA 98027
Rose Timothy L. officer: Executive VP 999 LAKE DRIVE ISSAQUAH WA 98027
Vachris Roland Michael officer: Executive VP 999 LAKE DRIVE ISSAQUAH WA 98027
Klauer James C officer: Executive Vice President 999 LAKE DRIVE ISSAQUAH WA 98027
Miller Russell D officer: Executive Vice President 999 LAKE DRIVE ISSAQUAH WA 98027
Callans Patrick J officer: Executive VP 999 LAKE DRIVE ISSAQUAH WA 98027

Costco Wholesale Headlines

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