Costco Wholesale Corporation

Strong Q4 and full-year growth; tariff refunds helped but were reinvested - Q4 (16 weeks ended Aug. 30, 2026): Net sales $93.87B (+11.2% YoY); comparable sales +9.4% (+6.7% excluding gas FX impacts); digital comparable sales +19.5% ( +19.8% ex FX ). - Profitability: Net income $2.998B or $6.75 EPS; includes a nonrecurring $0.15 EPS benefit from IEEPA tariff refunds (partly offset by reinvestment into lower prices/member value). - Tariff refunds scale: $184M in Q4 ($174M refunds + $10M interest), i.e., a bit over 1/3 of total expected; company says Q1 FY27 received a similar amount already and will keep reinvesting “majority” to preserve value.

Membership momentum remains a key driver (quality up: exec penetration at all-time high) - Paid members: 84.1M total paid (+3.8% YoY); 42.3M paid executive (+9.4% YoY), which is highlighted as all-time high. - Renewal rates improved: U.S./Canada 92.3% (+10 bps vs prior quarter); Worldwide 89.8% (+10 bps). - Investor debate addressed: Management acknowledged slower “headline” membership growth recently but argued sign-ups are healthy, and improved mix/loyalty (especially executive penetration and younger members) should support spend and renewals over time.

Merchandise execution: strong “non-gas” comps; categories and value initiatives worked - Traffic: Worldwide shopping frequency +3.3%. - Comp growth by context: Gas boosted reported trends (comps mid-30s), while ex-gas/FX remains healthy (comps adjusted in ~6–7% range). - Nonfood stood out: Management emphasized nonfood was the top performing category in the quarter, with specific strength in health & beauty, home furnishings/housewares, electronics (incl. K-beauty items), and fresh (bakery/meat momentum). - Surprising positive: Despite tariff and assortment disruption history, the call suggests holiday confidence and strong buying lineup.