Costco continues to strengthen its presence in France, but profitability remains a distant prospect, confirming that the membership-based club-entrepôt model requires a long maturation period and an intense investment phase before reaching sustainable economic equilibrium. According to documents analyzed by LSA, the French subsidiary of the American group closed the fiscal year ended August 31, 2025, with a net loss of approximately €18 million, an improvement from the €19,9 million recorded the previous year, but still significant, indicating a structure still in its development phase.
However, this figure is part of a context of solid and consistent commercial growth, highlighting how the brand's approach to the French market is yielding significant results in terms of volumes and penetration. Revenue reached €254,8 million, an increase of nearly 7% year-over-year, driven almost exclusively by merchandise sales, which are the core of Costco's operating model and the primary driver of store traffic.
Despite this growth, operating profitability remains negative, with a loss of €18,3 million, reflecting the continued high cost impact of network expansion and the construction of the infrastructure needed to support future growth. Gross margin stands at around €40 million, equal to approximately 16% of revenue, a level consistent with a commercial strategy based on competitive pricing and high volumes, but leaving little room to cover fixed costs at this stage.
2025 proved to be a particularly significant year for growth, with the opening of the new Mulhouse warehouse at the end of the year. This facility hasn't yet contributed to the results, but it represents a key step in the brand's regional expansion strategy. The membership-based club model, already well-established in the United States and other international markets, requires more time in Europe to build a sufficiently large and loyal member base, a key factor in generating economies of scale and improving overall profitability.
In this scenario, the parent company's support remains crucial, allowing the French subsidiary to sustain an intensive growth phase without immediate pressure on its financial results. Over the course of the financial year, the group significantly strengthened its financial structure through several capital transactions, increasing equity from €77,5 million to €149,5 million, virtually doubling in just one year.
At the same time, the cash position showed a significant increase, exceeding €60 million compared to less than €9 million the previous year, thus providing a solid financial basis for the continuation of the growth plan. Investments in fixed assets exceeded €33 million, resources primarily allocated to preparing for new openings and strengthening operational capacity, confirming a clearly long-term strategy.
Costco's economic equation in France therefore hinges on its ability to reach a sufficient critical mass in terms of stores and active members, a prerequisite for spreading costs and progressively improving margins. For now, the brand continues to prioritize expansion and consolidation of its market presence, accepting natural losses that are part of a strategy of investing and building value in the medium to long term.
