Costco Wholesale Corp

Strong Q4 and FY momentum (core demand + broad-based categories) - Q4 results: Net sales $93.87B (+11.2% YoY); comparable sales +9.4% (and +6.7% adjusted excluding gas price inflation and FX). Digitally-enabled comps +19.5% (+19.8% ex-FX). Traffic +3.3% worldwide; ticket +5.9% worldwide. - Profit: Net income $2.998B (+12.3% YoY), EPS $6.75 (+12.4% YoY excluding the IEEPA tariff-refund benefit). - Category strength: Non-food was highlighted as the highest performing major category, supporting confidence that demand remains resilient even where gas/FX affects headline comps.

Digital and ancillary businesses accelerating (incremental vs core) - Digital: Total site/app traffic +30%; digitally enabled sales >$33B (+20%+) for FY. AI-driven search traffic is rising fast (triple-digit growth) and shows the highest conversion rate. - Delivery marketplaces: Uber Eats expansion from 17 states to all U.S.; DoorDash expanded to the U.S.; Costco noted these tend to be mostly incremental with limited impact on core grocery warehouses. - Pharmacy/gas/travel: Pharmacy sales nearly +20% (scripts double-digit growth; digital tools like Rx Pay Ahead). Gas comps were positive mid-30s and the business had a record year; travel also grew double digits in key categories.

Tariff refunds: beneficial but non-recurring—company reinvests into price - Q4 tariff-related: Received $184M total ($174M refunds + $10M interest), described as just over 1/3 of total expected refunds. - Accounting impact: Nonrecurring benefit +$0.15 per diluted share in Q4 (net of partial reinvestment). - Reinvestment strategy: Majority of refund dollars were reinvested into member value via price reductions (examples cited included Kirkland walnuts, coffee, pepper, etc.). - Outlook for 1Q27: Company said it has already received a similar amount in Q1 FY27 and expects recurring quarterly visibility/discussion since tariff impacts will continue to affect earnings temporarily.