Costco Wholesale Corporation, trading as CTO.DE on XETRA, delivered a modest but durable top-line performance in Q3 2024. Revenue stood at $58.515 billion, up 1.24% year over year, with gross profit of $7.342 billion translating to a gross margin of approximately 12.55%. Operating income reached $2.197 billion, yielding an operating margin of about 3.75%, while net income totaled $1.681 billion and earnings per share (diluted) of $3.48–$3.49 for the period. The quarter benefited from robust cash generation, with operating cash flow of $2.999 billion and free cash flow of $1.937 billion, supporting a strong liquidity position despite a near-term working capital profile.
Costco also maintained a solid balance sheet with total assets of $67.91 billion and total stockholders’ equity of $21.77 billion. Cash and cash equivalents stood at $10.40 billion, and total debt was $9.30 billion, resulting in net debt of approximately negative $1.11 billion. The company’s liquidity is underpinned by a conservative capital allocation approach: dividends of $515 million and share repurchases of $162 million in the quarter, alongside meaningful ongoing capex of $1.062 billion.
From a profitability standpoint, the quarterly metrics imply a business with durable operating leverage but with typical retailer margins. The company continues to benefit from its membership model and scale advantages, though gross margins remain modest relative to many consumer staples peers. In aggregate, the results reinforce Costco’s ability to generate steady cash flow and return capital to shareholders, while highlighting ongoing sensitivity to macro consumer spending dynamics and competitive intensity in the discount/club retailer space.