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 were $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 prior year [12] - Membership fee income increased by $212 million or 14% year over year, reaching $1.72 billion [14] - Gross margin for Q4 was 11.13%, up 13 basis points year over year [17] - SG&A rate increased to 9.21%, up 17 basis points from 9.04% last year [18] Business Line Data and Key Metrics Changes - E-commerce sales exceeded $19.6 billion, increasing over 15% year over year [7] - Comparable sales were up 5.7%, or 6.4% adjusted for gas deflation and foreign exchange [12] - E-commerce comparable sales were up 13.6%, or 13.5% adjusted for foreign exchange [13] - Fresh sales were up high single digits, with double-digit growth in meat [22] - Non-foods had comparable sales in the high single digits, with strong performance in gold and jewelry, gift cards, and consumer electronics [23] Market Data and Key Metrics Changes - The company opened 10 new warehouses in Q4, bringing the total to 914 worldwide [5] - Plans to open another 35 warehouses in fiscal year 2026, including five relocations [5] - Total paid members reached 81 million, up 6.3% year over year, with 38.7 million paid executive memberships, up 9.3% [15] Company Strategy and Development Direction - The company aims to grow market share by delivering high-quality items at the best value [11] - Continued focus on expanding Kirkland Signature product sourcing to lower costs and reduce emissions [8] - Investments in technology and enhanced checkout processes to improve member experience [9] - Emphasis on digital strategy to enhance member engagement and e-commerce capabilities [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growth despite macroeconomic uncertainties [11] - The company is adapting to changes in membership dynamics, particularly with younger members [41] - Management noted the importance of improving renewal rates for online sign-ups [42] Other Important Information - Capital expenditure in Q4 was approximately $1.97 billion, with a total of under $5.5 billion for the full year [20] - The company is focusing on mitigating tariff impacts and increasing domestic sourcing [26] - Inflation remained in the low to mid-single digit range, with varying impacts across categories [25] Q&A Session Summary Question: Awareness of extended member hours and potential comp lift - Management communicated effectively about extended hours, resulting in a 1% comp lift, with ongoing efforts to inform members [32][33][34] Question: Expected decline in membership renewal rates - Management acknowledged a potential decline in renewal rates due to increased online sign-ups but emphasized overall membership growth and engagement [38][39][41] Question: Insights on core margins and price increases - Core margins improved by 29 basis points, with effective management of tariffs and supply chain efficiencies contributing to this outcome [45][46][47] Question: Sustainability of membership fee income growth - Management remains optimistic about continued membership growth driven by new warehouse openings and younger member engagement [55][56] Question: E-commerce and grocery demand in light of competition - Management noted strong growth in Instacart-driven traffic and remains aware of competition, focusing on delivering desired products to consumers [65][66][67] Question: Future capital expenditure plans - Management indicated that capital expenditure would likely grow in 2026, focusing on warehouse openings, remodels, and technology investments [74][76]

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]

Group 1 - Membership income grew by approximately 14% year-over-year, indicating strong growth in a key revenue area for the company [1] - The CFO mentioned efforts to offset tariffs by sourcing products differently, which is crucial for maintaining profit margins [1][2] - The company is introducing alternatives to tariff-affected items under the Kirkland brand and adjusting their product assortment accordingly [2] Group 2 - The increase in overall membership fees is partially attributed to the rise in membership costs, with just under half of the fee increase linked to this change [3] - Despite these developments, stock prices have not shown significant movement [3]

Market Trends - Warehouse clubs are expanding locations and attracting more shoppers despite retailers facing higher costs from tariffs [1] - Warehouse clubs are attracting younger customers through convenient online shopping, appealing merchandise, and affordable meals [2] Customer Demographics - Gen Z and Millennials account for approximately 50% of Sam's Club's new members over the past 2 years [3] - Costco's average customer age is decreasing, with nearly 50% of new members being under 40 years old [3] Business Strategies - Sam's Club is offering delivery services for items like rotisserie chickens and hot pizzas [2]

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 ...

Market Overview - The market has experienced three consecutive down days, marking the worst week since early August, with the Dow down 173 points or approximately 0.4% [2] - The Nasdaq and S&P 500 showed similar trends, while small caps were down the most at 0.9% [2] - The VIX index has been trending upwards, indicating increased market volatility [3] Sector Performance - The energy sector (XLE) was the only sector in the green, up 0.9%, breaking out of a multi-month base [4] - Healthcare, consumer discretionary, and materials sectors were down by 1% or more, with healthcare down the most at 1.6% [5] Company Insights: Pure Storage - Pure Storage announced advancements in data storage technology aimed at enhancing AI initiatives for businesses, emphasizing the need for better data accessibility [6][8] - The company claims to have a competitive advantage due to its significant investment in R&D, which is higher than its competitors [12] - Pure Storage's new product, Flashblade Exit, reportedly offers performance benchmarks five times higher than competitors, positioning the company favorably in the market [15] Company Insights: Costco - Costco's fourth-quarter results showed revenue of $86.16 billion, slightly above expectations, with same-store sales growth of 6.4% [44] - The Canadian segment contributed significantly to sales growth, with a 6.3% increase, while U.S. sales rose by 5% [46] - Costco's membership price increase has not deterred consumers, who are increasingly value-conscious [46] Industry Trends: Formula 1 - Formula 1 is experiencing a surge in popularity, with viewership expected to reach an average of 1.4 million per race by the 2025 season [21] - The sport has successfully engaged a younger audience, partly due to the influence of Netflix and increased diversity among fans [23] - The introduction of a budget cap has led to greater competitiveness, with multiple teams winning races, enhancing the sport's appeal [24]

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]