Costco Revenue By Country: U.S., Canada, and International

Grocery stores. Pexels Images.

This article outlines the distribution of Costco’s revenue across various countries and regions. Costco generates its revenue from several key areas, including the United States, Canada, and other international regions.

The bulk of Costco’s revenue originates from the United States, followed by Canada as the second-largest contributor. The remaining revenue comes from other international operations.

Let’s take a look!

Investors interested in Costco’s other key statistics may find more resources on these pages:

• Costco revenue breakdown: membership and merchandise sales,
• Costco revenue segments: foods, non-foods, fresh foods, etc., and
• Costco profit margin vs Walmart.

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Definitions

To help readers understand the content better, the following terms and glossaries have been provided.

Reportable Segments: Costco primarily operates membership warehouses through its wholly owned subsidiaries located in the U.S., Canada, Mexico, Japan, the U.K., Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden.

The management organizes reportable segments based on operational decisions and financial performance assessments, which take into account geographic locations.

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Why is Costco generating the majority of its revenue from the U.S.?

Costco generates the majority of its revenue from the U.S. for several reasons:

• Market Presence: Costco has a significant number of its warehouses located in the United States. This extensive presence allows it to reach a large customer base.
• Customer Base: The U.S. has a substantial population that fits Costco’s target demographic, which includes individuals and families looking for bulk purchases and discounted prices.
• Membership Model: Costco’s membership model is highly popular in the U.S., with many customers willing to pay annual fees for access to Costco’s warehouses and the benefits that come with membership.
• Brand Loyalty: Costco has built a strong brand reputation in the U.S., leading to high customer loyalty and repeat business.
• Economic Factors: The economic environment in the U.S. supports consumer spending, which benefits retailers like Costco.

These factors combined contribute to Costco’s strong revenue generation in the U.S. compared to other regions.

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U.S. Revenue

Costco-U.S.-revenue

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Costco’s reportable segments consist of the U.S., Canada, and Other International regions. The definitions of the company’s reportable segments are available here: reportable segments.

Costco generates the majority of its revenue from the U.S., as demonstrated in the chart above. The revenue figures from the U.S. far surpass those from other countries, including Canada.

In fiscal year 2024, Costco’s U.S. revenue reached an impressive $184.1 billion, a slight increase from the $176.6 billion recorded in fiscal year 2023. Fiscal year 2022 saw Costco earning $165.3 billion from its U.S. operations, significantly higher than the $141.4 billion recorded in fiscal year 2021.

Since fiscal year 2016, Costco’s U.S. revenue has increased by an astounding 110%, rising from $86.6 billion to the most recent figure of $184.1 billion. This remarkable growth over the past decade underscores the company’s strong market presence and successful business model in the United States.

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Canada and Other International Operations Revenue

Costco-revenue-from-Canada-and-International

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Costco’s reportable segments consist of the U.S., Canada, and Other International regions. The definitions of the company’s reportable segments are available here: reportable segments.

Canada has consistently been Costco’s second-largest market after the United States, with revenue reaching $34.9 billion in fiscal year 2024. In the same fiscal year, Other International operations generated revenue of $35.4 billion, bringing both regions’ contributions nearly on par.

Historically, Costco’s revenue from Canada significantly outpaced that from Other International operations. However, this trend has gradually shifted, culminating in fiscal year 2024, when revenue from Other International operations surpassed that from Canada for the first time. This milestone highlights the growing importance and expanding presence of Costco’s global markets.

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Percentage Of Revenue From The U.S., Canada, and Other International Operations

Costco-revenue-by-country-in-percentage

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Costco’s reportable segments consist of the U.S., Canada, and Other International regions. The definitions of the company’s reportable segments are available here: reportable segments.

Costco’s revenue from the U.S. has consistently accounted for over 70% of its total revenue. In fiscal year 2024, this ratio amounted to 72.4%, aligning closely with the 72.9% recorded in fiscal year 2023.

Over the long term, the revenue share from the U.S. has remained relatively stable, underscoring the significance of the U.S. market to the company’s overall financial performance.

In contrast, Costco has observed a decline in the revenue share from Canada, decreasing from 14.3% in fiscal year 2016 to 13.7% in fiscal year 2024. This trend indicates a shift in the company’s revenue dynamics within North America.

Meanwhile, Costco’s revenue from Other International operations has shown a positive trend, increasing from 12.7% in fiscal year 2016 to 13.9% in fiscal year 2024. This growth highlights the rising importance of international markets to Costco’s overall revenue stream and the company’s expanding global footprint.

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YoY Growth Rates Of Revenue From The U.S., Canada, and Other International Operations

Costco-revenue-by-country-yoy-growth-rates

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Costco’s reportable segments consist of the U.S., Canada, and Other International regions. The definitions of the company’s reportable segments are available here: reportable segments.

Among all regions, Costco’s Other International operations have demonstrated slightly better growth rates compared to other regions. For instance, the average annual revenue growth from fiscal year 2020 to 2024 (a five-year period) for Other International operations was an impressive 13%, while the U.S. revenue growth averaged 11% annually during the same period.

Costco’s Canada operations recorded an average annual revenue growth of 11%, aligning closely with its U.S. counterpart.

A noticeable trend is that revenue growth in most regions has slowed significantly post-pandemic, as depicted in the chart above. For example, U.S. revenue growth decelerated to just 4.3% in fiscal year 2024, down from 7% in 2023 and a remarkable 17% in 2022.

Similarly, Costco’s Canada revenue growth has also decelerated considerably post-pandemic. In fiscal year 2024, it recorded a growth rate of 5.5%, compared to 4.4% in 2023, and a peak of 16% in 2022.

Meanwhile, Other International operations posted a growth rate of 9% in fiscal year 2024, consistent with the 9% in 2023 but lower than the 10% recorded in 2022.

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Conclusion

Overall, Costco is a robust entity with a strong domestic foundation and a growing international presence. The company’s ability to maintain its market share in the U.S. while expanding globally is a testament to its successful business model and strategic initiatives. However, the slowing growth rates signal the importance of adapting to evolving market conditions to sustain long-term success.

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References and Credits

1. All financial figures presented were obtained and referenced from Costco’s annual reports published on the company’s investor relations page: Costco Investor Relations.

2. Pexels Images.

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