Costco’s latest annual report reveals that about one-third of its yearly revenue is generated in California, and over 70% of its total sales come from the United States. The report highlights California, known as the Golden State, as having more high-volume warehouses than any other US market. Costco recognizes that any significant decline in California’s operations could greatly affect the company’s overall performance.
Despite this concentration, investors shouldn’t be overly concerned about Costco’s geographical focus. The company’s exceptional success is linked to its strong presence in one of America’s fastest-growing areas. However, investors should keep in mind Costco’s dependence on California when assessing the company’s overall performance.