Financial Data and Key Metrics Changes - Net sales for Q4 fiscal year 2025 reached $84.43 billion, an increase of 8% from $78.18 billion in the same quarter last year [12] - Net income for Q4 was $2.61 billion, or $5.87 per diluted share, up 11% from $2.35 billion, or $5.29 per diluted share in the previous year [12] - Membership fee income increased to $1.72 billion, a growth of 14% year over year [14] Business Line Data and Key Metrics Changes - E-commerce sales exceeded $19.6 billion, increasing over 15% [7] - Comparable sales were up 5.7%, or 6.4% adjusted for gas deflation and foreign exchange [12] - Gross margin for Q4 was reported at 11.13%, up 13 basis points year over year [17] Market Data and Key Metrics Changes - Traffic or shopping frequency increased by 3.7% worldwide [13] - The average transaction or ticket was up 1.9% worldwide, adjusted for gas deflation and FX [14] - The U.S. and Canada renewal rate was 92.3%, while the worldwide rate was 89.8% [15] Company Strategy and Development Direction - The company plans to open 35 new warehouses in fiscal year 2026, indicating continued expansion both domestically and internationally [5] - There is a focus on increasing Kirkland Signature product sourcing in the regions where items are sold to lower costs and reduce emissions [8] - The company aims to enhance member experience through improved checkout technology and digital enhancements [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growing market share despite macroeconomic uncertainties [11] - The company is optimistic about the membership base growth, particularly among younger members [40] - Management noted that the membership renewal rate is expected to decline slightly due to a higher number of online sign-ups [41] Other Important Information - Capital expenditure for Q4 was approximately $1.97 billion, with a total of under $5.5 billion for the full year [20] - The company celebrated milestones such as the 40th anniversary of its $1.50 hot dog and soda combo [7] - Inflation remained in the low to mid-single digit range, with specific commodities experiencing varying inflation rates [25] Q&A Session Summary Question: Awareness of extended member hours and potential comp lift - Management indicated that communication about extended hours has been effective, with a 1% comp lift observed [32][33] Question: Membership renewal rate expectations - Management acknowledged that the renewal rate may continue to decline due to a higher number of online sign-ups but remains optimistic about overall membership growth [38][40] Question: Core margins and price increases - Management reported a 29 basis point increase in core margins, with improvements across all main categories [45][47] Question: Sustainability of membership fee income growth - Management expressed confidence in continued growth opportunities for membership income, driven by new warehouse openings and younger member engagement [56][57] Question: E-commerce and grocery demand - Management noted strong growth in Instacart-driven traffic and emphasized the importance of fresh foods in meeting online grocery demand [66][68]

Financial Data and Key Metrics Changes - Net sales for Q4 2025 reached $84.43 billion, an increase of 8% from $78.18 billion in Q4 2024 [10] - Net income for Q4 was $2.61 billion, or $5.87 per diluted share, up 11% from $2.35 billion, or $5.29 per diluted share in the same quarter last year [10] - Membership fee income increased to $1.72 billion, a 14% year-over-year growth [11] Business Line Data and Key Metrics Changes - E-commerce sales exceeded $19.6 billion, increasing over 15% year-over-year [5] - Comparable sales were up 5.7%, or 6.4% adjusted for gas deflation and foreign exchange [10] - Fresh sales were up high single digits, with double-digit growth in meat [20] Market Data and Key Metrics Changes - Traffic or shopping frequency increased by 3.7% worldwide [11] - The average transaction or ticket was up 1.9% worldwide, adjusted for gas deflation and FX [11] - Gas volumes saw positive low single digits, but gas comps were negative mid-to-high single digits due to lower average prices [22] Company Strategy and Development Direction - The company plans to open 35 new warehouses in fiscal year 2026, indicating continued expansion opportunities [4] - There is a focus on moving more Kirkland Signature product sourcing closer to the markets where they are sold to lower costs and reduce emissions [6] - The company is enhancing member experience through improved checkout technology and digital enhancements [7][25] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the ability to grow market share despite macroeconomic uncertainties [9] - The company is focused on improving renewal rates for new online members through targeted digital communications [15][40] - Overall inflation remains in the low to mid-single digit range, with specific commodities experiencing varying inflation rates [22][75] Other Important Information - Capital expenditure in Q4 was approximately $1.97 billion, with a total of under $5.5 billion for the full year [18] - The company celebrated milestones such as the 40th anniversary of its hot dog and soda combo and the 30th anniversary of Kirkland Signature [5] - Digital e-commerce site traffic was up 27%, with strong sales in various categories [24] Q&A Session All Questions and Answers Question: Awareness of extended member hours and potential comp lift - Management communicated effectively about the extended hours, resulting in a 1% comp lift, with expectations for further growth as awareness increases [30][31] Question: Expected decline in membership renewal rates - Management anticipates a continued decline in renewal rates due to a higher number of online sign-ups, but overall membership engagement remains strong [34][39] Question: Insights on core margins and price increases - Core margins improved by 29 basis points year-over-year, with a focus on maintaining value while navigating tariffs [42][44] Question: Sustainability of warehouse growth pace - The company sees potential for continued growth in warehouse openings, with a focus on making informed decisions rather than hitting specific targets [68][70] Question: Impact of tariffs on gross margin - Management is closely monitoring the impact of tariffs and is prepared to adjust pricing strategies as necessary [80]

Membership Growth - Membership income increased by approximately 14% year-over-year, a key indicator of business performance [1] - Less than half of the increase in overall membership fees is attributed to the increase in what members pay [3] Tariff Mitigation Strategies - The company is offsetting tariffs by sourcing differently than before [1] - Introducing Kirkland brand alternatives to tariff-affected items [2] - Adjusting assortment by dropping items or ordering larger quantities from less affected manufacturers [2]

Hey, so I just got off the call and they are still talking, but some of the highlights for growth in the quarter was that membership income grew by about 14% year-over-year. And that's a closely watched area since so much of uh their their business comes down to members. The other thing that they spoke about is uh CFO Gary Milit mentioned that they're trying to offset tariffs by sourcing differently than they were before.They're introducing things from the Kirkland brand that are alternatives to tariff affe ...

More Americans are literally joining the club, the warehouse club. As many retailers feel squeezed by higher costs from tariffs, all three warehouse clubs, Costco, Walmart owned Sam's Club, and BJ's are opening more locations and attracting more shoppers who are willing to pay to shop in their stores. So, what's driving the trend.Clubs have long been known for cheaper groceries, gas, and bulk items. But they're attracting younger customers as they add more convenient ways to shop online, eye-catching mercha ...

Group 1 - Costco's extended operating hours this summer have resulted in an estimated 1% increase in weekly US sales since implementation, which has been positively received by members [1] - The company reported full-year revenue of $269.9 billion, reflecting an 8.1% increase compared to the previous year [1] - The extended hours and new perks have led to a higher percentage of shoppers upgrading their memberships, with Costco finishing the quarter with 81 million paid memberships, including 38.7 million executive tier memberships [2] Group 2 - The company gained 1.4 million additional memberships during the quarter, of which 1.1 million were executive tier memberships [2] - Foot traffic data indicates that the adjustment in operating hours is helping Costco achieve key goals, such as encouraging shoppers to visit more frequently and quickly [2] - Analysts view the changes as a positive development for the company, suggesting that it is a win for Costco [3]

[Music] That's the closing bell on Wall Street and now it's market domination overtime. We're giving you full team coverage of all the moves to get you up to speed on the action from today's trade. Yahoo.Finances Jared Blickery joining us now to break down the market action. Jared, >> thank you Josh. three down days in a row.And also, I would add that this is the worst week on track for the worst week since the beginning of August. That would be August 1st. Kind of a nasty day there in and of itself.But let ...

[Music] That's the closing bell on Wall Street and now it's market domination overtime. We're giving you full team coverage of all the moves to get you up to speed on the action from today's trade. Yahoo.Finances Jared Blickery joining us now to break down the market action. Jared, >> thank you Josh. three down days in a row.And also, I would add that this is the worst week on track for the worst week since the beginning of August. That would be August 1st. Kind of a nasty day there in and of itself.But let ...

Core Insights - Costco's earnings per share (EPS) for the fiscal fourth quarter was $5.87, with total revenue reaching $86.16 billion, meeting Wall Street expectations despite concerns over tariffs and inflation impacting consumer spending [1] - The company reported a net sales increase of 8% to $84.4 billion compared to $78.2 billion in the same quarter last year, with comparable sales in the U.S. rising 6% on an adjusted basis [2] Financial Performance - Wall Street had projected an EPS of $5.80 on revenue of $86 billion, with expectations for same-store sales growth of 5.9% year-over-year [3] - Membership fees generated $1.7 billion in revenue, marking a 14% year-over-year increase, highlighting strong customer loyalty with renewal rates frequently surpassing 90% [4] Market Position and Strategy - Costco's supply-chain capabilities and strong vendor relationships position it well to handle tariff-related pressures, with analysts noting that its value proposition could become more appealing in an inflationary environment [5] - The company has introduced an extra hour of shopping for executive members, which contributed an additional 1% to sales [4] Stock Performance and Valuation - Costco's stock has increased approximately 3.8% year-to-date, although it experienced a decline of less than 1% after the market closed [6] - Analysts express concerns regarding the sustainability of Costco's high valuation, indicating that the stock valuation is challenging compared to historical standards [6]

Market Performance - U.S. stock markets experienced their third consecutive day of declines, with the Nasdaq Composite and S&P 500 both falling by 0.5%, while the Dow Jones Industrial Average dipped by 0.4% [1] - Despite recent losses, all three major indexes remained close to record highs achieved earlier in the week [1] Economic Indicators - The 10-year Treasury yield rose to 4.17% from 4.15%, indicating stronger economic conditions that may make equities less attractive [2] - The final revision of second-quarter GDP showed a robust annual growth rate of 3.8%, up from a previous estimate of 3.3%, raising concerns about the need for continued monetary easing [3] - Weekly jobless claims fell to 218,000 from 232,000, suggesting a tightening labor market [4] Federal Reserve Outlook - Comments from Kansas City Fed President Jeff Schmid indicated that the Federal Reserve may not need to lower interest rates soon, contrasting with earlier market expectations for multiple rate cuts [5] - The upcoming release of the U.S. Core PCE Price Index is anticipated to influence future monetary policy decisions, with forecasts of a 0.2% monthly increase and a 2.8% annual rate [6] Corporate News - CarMax shares plummeted by 20% after missing analysts' estimates for second-quarter results [10] - IBM shares surged over 5% following HSBC's announcement of successful use of IBM's quantum computers for bond trading [11] - Intel's shares climbed over 6.5% due to reports of seeking a substantial investment from Apple [12] - Starbucks announced plans to lay off approximately 900 corporate employees and close some stores, expecting a 1% decline in total store count for 2025 [13] - Lithium Americas shares soared 95.8% on reports of potential U.S. government ownership stake due to its lithium project in Nevada [16]