Core Insights - Costco reported earnings per share of $4.50, exceeding expectations of $4.27 [1] - Total revenues, including membership fees, reached $67.307 billion, surpassing the anticipated $67.137 billion [1] - Comparable sales increased by 6.4% for the quarter, with digitally enabled sales rising by 20.5% [1][2] Revenue Breakdown - Membership fees included in total revenues grew by 14% year-over-year [2] - The reporting method for digitally enabled sales has changed, making comparisons to previous quarters different [2] Market Reaction - Shares of Costco experienced a slight decline following the earnings report [2]

Sales Performance - Net sales reached $66.0 billion, reflecting an 8.2% growth[4] - Comparable sales increased by 6.4%[4] - Adjusted comparable sales also grew by 6.4%[4] - Digitally-enabled comparable sales surged by 20.5%[4, 16] - Adjusted digitally-enabled comparable sales also increased by 20.5%[4, 16] - US comparable sales increased by 5.9%, Canada by 6.5%, and Other International by 8.8%[8] Financial Highlights - Gross margin was 11.32%, a 4 bps increase compared to Q1 FY'25[9] - SG&A was 9.60%, a 1 bp decrease compared to Q1 FY'25[9] - The company reported a tax benefit of $72 million, or $0.16 per diluted share, related to stock-based compensation[9] Membership Metrics - Membership income grew by 14.0%[11] - The worldwide membership renewal rate was 89.7%, with the US/CN renewal rate at 92.2%[11] - Paid memberships reached 81.4 million, a 5.2% increase[14] - Total cardholders amounted to 145.9 million, a 5.1% increase[14] - Executive memberships totaled 39.7 million, representing 74.3% penetration of sales to executive members[14] Digital Performance - Ecommerce site traffic increased by 24%[18] - Ecommerce average order value grew by 13%[18] Warehouse Expansion - The company plans to increase its total warehouses from 914 to an estimated 942 by the end of FY'26[19]

Core Insights - Costco presented a mixed financial performance to investors, indicating both strengths and weaknesses in its recent results [1] Financial Performance - The company reported a revenue increase, but the growth rate showed signs of slowing down compared to previous quarters [1] - Membership fees contributed significantly to the overall revenue, highlighting the importance of this segment for Costco's business model [1] Market Reaction - Investors reacted cautiously to the financial snapshot, reflecting concerns over the sustainability of growth amid changing consumer behaviors [1] - The stock price experienced fluctuations following the announcement, indicating mixed investor sentiment [1]

Group 1: Company Earnings Reports - Costco (COST) reported Q1 earnings per share (EPS) of $4.50, exceeding the estimated $4.28, with total revenue reaching $67.31 billion against an estimate of $67.07 billion, and comparable sales rose 6.4% [3][9] - Broadcom (AVGO) posted Q4 adjusted net revenue of $18.02 billion, surpassing the $17.47 billion estimate, with semiconductor solutions revenue at $11.07 billion, beating the $10.74 billion estimate, and adjusted EPS of $1.95, exceeding the $1.87 consensus [4][9] - Lululemon (LULU) announced Q3 net revenue of $2.57 billion, topping the $2.48 billion estimate, and EPS of $2.59, significantly higher than the $2.22 forecast, but projected Q4 net revenue between $3.50 billion and $3.59 billion, below the consensus estimate of $3.59 billion [5][6][9] Group 2: Market Performance - U.S. equity markets showed mixed performance, with the Dow Jones Industrial Average closing up 650.12 points (1.35%) at 48,707.87, while the Nasdaq Composite dipped 65.89 points (0.28%) to close at 23,588.26, and the S&P 500 posted a modest gain of 12.46 points (0.18%) at 6,899.14 [7][9] Group 3: Leadership Changes - Lululemon announced a significant leadership change with CEO Calvin McDonald set to step down, introducing uncertainty alongside its mixed Q4 guidance [6][9]

Core Insights - Costco Wholesale Corp reported first-quarter revenue of $67.31 billion, surpassing analyst estimates of $67.14 billion [2] - The company achieved adjusted earnings of $4.50 per share, exceeding estimates of $4.27 per share [2] Financial Performance - Net sales for the fourth quarter increased by 8.2% year-over-year [3] - Total comparable sales rose by 6.4% on a year-over-year basis [3] - Membership fees reached approximately $1.33 billion, up from $1.17 billion in the prior year's quarter [4] Operational Metrics - Costco operates 923 warehouses, including 633 in the U.S. [4] - The company ended the first quarter with approximately $16.22 billion in cash and cash equivalents [4] Regional Sales Growth - Comparable sales growth in the U.S. increased by 5.9% [6] - Comparable sales growth in Canada increased by 6.5% [6] - Comparable sales growth in Other International markets increased by 8.8% [6] Stock Performance - Costco shares were down 0.18% in after-hours trading, priced at $883.22 at publication time [5]

Core Insights - Costco surpassed Wall Street's quarterly expectations with an 8.2% year-over-year sales increase [1] - The company reported a net income of $2 billion, or $4.50 per share, compared to $1.80 billion, or $4.04 per share, in the same quarter last year [3] - Revenue rose to $67.31 billion from $62.15 billion year-over-year, with comparable sales increasing by 5.9% in the U.S. and 6.4% globally [3] Financial Performance - Earnings per share were $4.50, exceeding the expected $4.27 [4] - Revenue of $67.31 billion was higher than the anticipated $67.14 billion [4] - Digital sales experienced a significant increase of 20.5% year-over-year [3] Membership Growth - Costco has attracted younger customers, contributing to an increase in membership sign-ups [2] - The company benefited from a membership fee increase in the U.S. and Canada, effective September 2024, which positively impacted new and renewing members [2]

Financial Performance - Net sales for Q1 FY 2026 increased by 8.2% to $65.98 billion, up from $60.99 billion in the same period last year[2] - Net income for the quarter was $2,001 million, or $4.50 per diluted share, compared to $1,798 million, or $4.04 per diluted share, last year[3] - Total revenue for the quarter reached $67.31 billion, up from $62.15 billion in the previous year[9] - Operating income rose to $2,463 million, compared to $2,196 million in the same quarter last year[9] Membership and Fees - Membership fees increased to $1,329 million from $1,166 million year-over-year[9] Sales Growth - Comparable sales growth for the U.S. was 5.9%, Canada 6.5%, and Other International 8.8%, with total company growth at 6.4%[2] Operational Metrics - Costco operates 923 warehouses globally, with 633 located in the U.S. and Puerto Rico[4] - Cash and cash equivalents at the end of the period were $16,217 million, up from $14,161 million at the beginning of the year[13] - Net cash provided by operating activities was $4,688 million, compared to $3,260 million in the prior year[13] Future Outlook - The company anticipates continued growth despite potential risks including economic conditions and competition[6]

Costco Wholesale beat Wall Street estimates for first-quarter revenue on Thursday, on the back of resilient demand from consumers across income groups amid rising economic uncertainty. ...

Core Insights - Costco Wholesale Corporation reported a net sales increase of 8.2% for the first quarter of fiscal 2026, reaching $65.98 billion compared to $60.99 billion in the same period last year [1] - The company achieved a net income of $2,001 million, or $4.50 per diluted share, up from $1,798 million, or $4.04 per diluted share, in the previous year [2] Sales Performance - Comparable sales growth for the first quarter was as follows: - U.S.: 5.9% - Canada: 6.5% (adjusted: 9.0%) - Other International: 8.8% (adjusted: 6.8%) - Total Company: 6.4% - Digitally-Enabled: 20.5% [1] Operational Metrics - Costco operates a total of 923 warehouses globally, with 633 located in the U.S. and Puerto Rico, and additional locations in Canada, Mexico, Japan, the U.K., Korea, Australia, Taiwan, China, Spain, France, Sweden, Iceland, and New Zealand [3] Financial Overview - Total revenue for the quarter was $67.31 billion, which includes $1.33 billion from membership fees, compared to $62.15 billion in the previous year [8] - Operating income increased to $2,463 million from $2,196 million year-over-year [8] Cash Flow and Investments - Net cash provided by operating activities was $4,688 million, significantly higher than $3,260 million in the prior year [12] - Cash and cash equivalents at the end of the period were $16,217 million, up from $14,161 million at the beginning of the year [13]

Core Insights - Costco's stock has struggled in 2025, but a positive quarterly result could lead to a turnaround [1] - The company is expected to report strong fiscal first-quarter earnings, driven by its membership model [1] Financial Performance - Q1 EPS is projected at $4.26, an 11.5% year-over-year increase, with total revenues anticipated at $67.3 billion, up 8.3% from the previous year [2] - Preliminary sales data indicates Q1 net sales of $65.98 billion, reflecting an 8.2% rise [2] Competitive Positioning - Costco's membership-based model and bulk sales strategy differentiate it from traditional competitors [3] - Comparable sales rose 6.4%, with U.S. gains of 5.9%, Canada at 6.5%, and Other International markets at 8.8% [3] E-commerce Growth - E-commerce sales are a key growth driver, with digitally enabled comparable sales surging over 20% in the quarter [4] - This follows a 15.6% growth in Q4 FY25, supported by investments in logistics and targeted online promotions [4] Membership Trends - Global membership renewal rates remain above 90%, with membership fee income expected to rise by 9% in FY26 [6] - Online sign-ups are attracting younger demographics, enhancing higher-margin revenue [6] Consumer Behavior - Consumer spending is shifting towards value and essentials, favoring Costco's bulk model [7] - There is a noted decline in non-essential spending, such as apparel, reflecting broader economic caution [8] Market Outlook - Costco's premium positioning and high renewal rates suggest potential outperformance during the holiday season [8] - The stock has a Zacks Rank 3 (Hold), indicating steady expectations despite stretched valuations [10] - Investors are keenly awaiting results for signs of sustained momentum and growth strategies [11]