Costco Wholesale Corporation

Strong Q4 results; “core” earnings growth; tariff refunds are a temporary swing factor - Q4 net income: $2.998B / $6.75 EPS, including a nonrecurring IEEPA tariff refund benefit of $0.15 EPS (after partial reinvestment into member value). - Excluding the nonrecurring tariff impact, net income and EPS grew ~+12% YoY (net income +$2.61B → +12.3%, EPS +$5.87 → +12.4%). - Net sales: $93.87B (+11.2% YoY). Comparable sales +9.4% (and +6.7% excluding gas inflation & FX; +6.7% excluding gas entirely + FX impact). - Digital enabled comp sales +19.5% (and ~+19.8% excluding FX). - Tariff refunds received in Q4: $184M total (about $174M refunds + $10M interest), described as ~1/3 of total expected; company plans to continue reinvesting the majority into price reductions/value back to members.

Demand resilient, but gas FX and mix matter; nonfoods leadership is a key “good” signal - Q4 traffic (shopping frequency) +3.3% worldwide, and ticket +5.9% worldwide (ex-gas inflation & FX: ticket +3.3%). - FX drag ~-0.3%; gas price inflation added ~+3%—so operating progress is better judged excluding gas/FX. - Management highlighted nonfood comp growth mid-to-high single digits as the strongest broad-based momentum; ancillary businesses also outperformed: - Gas comps: positive mid-30s (record volumes; value proposition as pump prices rose) - Pharmacy comps: nearly +20% YoY scripts growth, with continued digital expansion - Travel comp: high 20s and travel packages/cruises/car rentals grew double digits

Membership engine remains healthy; renewals improving; younger/digital members are a positive leading indicator - Q4 paid membership: 84.1M total paid members (+3.8% YoY); 42.3M executive (+9.4% YoY) (exec penetration described as record high). - Cardholders: 150.4M (+3.6% YoY). - Renewal rates: U.S./Canada 92.3% (+10 bps); Worldwide 89.8% (+10 bps). - Company acknowledged investors’ question about slower membership growth vs units, but argued underlying quality is improving: - Members under 40: more than 1/4 of base, up ~60% since COVID - Exec penetration and digital engagement are expected to support longer-term spend and renewal strength. - No explicit guidance on membership growth speed; management said they expect a “more typical” pattern as new-member cohorts mature/renew.