Costco Wholesale Corp /Newreason 02 of 4it makes it for less than anyone else canderived 2026-09-11accession 0000909832-26-000051
We operate profitably at significantly lower gross margins than most other retailers
Gross margin percentage excluding gasoline was 11.26% in Q3 and 11.18% year-to-date
We often sell inventory before we are required to pay for it, even while taking advantage of early payment discounts
Net cash provided by operating activities increased due to reduced net investment in merchandise inventories from faster inventory turns and improved payment terms with suppliers
no findingread · nothing bore on it
It held on this filing. No finding was written because nothing in it bore on the reason — the sentences it was read against are below.
the evidence · every sentence checkedfive sentences · whole, uncut
the claims it rests on
“We operate profitably at significantly lower gross margins than most other retailers”
“Gross margin percentage excluding gasoline was 11.26% in Q3 and 11.18% year-to-date”
“We often sell inventory before we are required to pay for it, even while taking advantage of early payment discounts”
“Net cash provided by operating activities increased due to reduced net investment in merchandise inventories from faster inventory turns and improved payment terms with suppliers”
what it was checked against
profitable at lower margins than competitors
“When combined with the operating efficiencies achieved by volume purchasing, efficient distribution and reduced handling of merchandise in no-frills, self-service warehouse facilities, these volumes and turnover enable us to operate profitably at significantly lower gross margins (net sales less merchandise costs) than most other retailers.”