Costco, the membership-based warehouse retailer known for bulk-value pricing and limited-store formats, posted one of its strongest overseas performances this year with $4.9 billion in revenue from its South Korean business for the fiscal year ending September 2025, up more than 12 percent from the previous period.
Operating profit increased, while net income dipped slightly to $140 million. The company plans to distribute $170 million in dividends, a sizable jump from last year.
The results come amid a challenging environment for traditional retailers in South Korea. Local chains such as Homeplus and Lotte have reported weaker numbers as inflation, online platforms, and shifts in consumer behavior reshape the market.
Homeplus recorded $4.7 billion in revenue during its fiscal year, and Lotte Mart and Lotte Super saw their third-quarter sales fall nearly 9 percent from a year earlier. Warehouse-style stores, however, continue to gain traction as shoppers look for value through bulk purchasing.
The momentum in South Korea highlights how Costco’s warehouse model is maintaining strength in advanced and highly competitive retail environments.
With limited room for expansion in its domestic market, growth increasingly comes from regions where the company can scale its formats and replicate efficiencies. South Korea’s performance adds to a broader pattern in which international operations play a growing role in sustaining the company’s long-term trajectory.
