Costco’s latest annual report reveals that almost a third of its yearly revenue comes from California, with over 70% of total sales generated in the United States. The report highlights that California, known as the Golden State, has more high-volume warehouses than any other US market. Costco recognizes the importance of this, noting that any major decline in these operations could significantly affect the company’s overall performance.
However, this doesn’t mean investors should be overly concerned about the company’s geographical focus. Costco’s remarkable success is largely due to its strong presence in one of America’s fastest-growing regions. Nonetheless, investors should consider Costco’s dependence on California when assessing the company’s overall performance.