Core Insights - Costco's decision to extend shopping hours for executive members is proving to be beneficial, as foot traffic data indicates an increase in shopper visits and frequency [1][3] - The adjustment has led to a shift in foot traffic patterns, with more shoppers visiting during the 9 a.m. hour, suggesting a positive reception of the new schedule [2][3] - Shorter shopping trips are being reported, with visits decreasing from an hour to 30-45 minutes, which is expected to drive additional visits and enhance overall shopping experience [4] Financial Impact - Costco's fiscal year ended on August 31, and the upcoming fourth-quarter results will provide insights into the financial effects of the extended hours, with analysts anticipating a positive contribution to sales growth [3][14] - The extended hours are expected to be "accretive" to the company's already strong sales performance this year [3] Customer Behavior - The extended hours have resulted in a more balanced flow of foot traffic, improving the shopping experience for all customers, regardless of membership tier [3] - There is a noted increase in younger consumers, particularly millennials and Gen Z, who are starting families, contributing to a slight decrease in average income among Costco's customer base [12] Membership Dynamics - The potential for new shoppers to become long-term members is significant, especially with the upgrade from Gold Star to Executive membership, which doubles fee revenue from those members [13] - The upcoming earnings call may provide further insights into the growth of Costco's membership tiers [14] Operational Strategies - Costco is testing various strategies to manage increasing store traffic, with extended hours being one of the most visible initiatives [5] - A new "scan and go" approach is being trialed, allowing store workers to scan items in customers' carts to streamline the checkout process [6]

Group 1 - Costco is set to release its fiscal Q4 2025 results on September 25, 2025, with analysts predicting earnings of $5.81 per share and revenue of $86.11 billion, reflecting a 10% increase in EPS and an 8% increase in revenue compared to the previous year [2] - In Q3 FY2025, Costco reported EPS of $4.28, a 13% year-over-year increase, on revenue of $63.2 billion, which is an 8% increase, driven by 8% growth in comparable sales and a 16% increase in e-commerce [2] - Costco's current market capitalization stands at $418 billion, with a total revenue of $269 billion over the last twelve months, maintaining operational profitability with $10 billion in operating profits and a net income of $7.8 billion [2] Group 2 - Historical data indicates that Costco stock has increased after earnings announcements 65% of the time, with a median one-day gain of 1.9% and a maximum movement of 7% [2][6] - Over the last five years, there have been 20 documented earnings data points for Costco, with 13 positive and 7 negative one-day returns, resulting in a 65% occurrence of positive returns [6] - The correlation between 1D, 5D, and 21D returns can provide insights for traders, as analyzing these relationships may help in making informed trading decisions following earnings announcements [7][8]

Group 1 - Costco Wholesale Corporation is highlighted as a significant retail player with earnings report scheduled after market close on Thursday [1] - Nike Inc. is set to report its earnings after market close next Tuesday [1] - Several IT services companies, including Accenture plc Class A (Ireland), will report earnings on Thursday morning [1] Group 2 - Leisure companies Carnival Corporation and Carnival Plc ADS are scheduled to report pre-market next Monday [1]

With a market cap of $418.5 billion, Costco Wholesale Corporation (COST) is a global operator of membership warehouses that offer a wide selection of branded and private-label products across diverse categories at discounted prices. The company generates revenue primarily through store sales and membership fees while also operating e-commerce platforms and ancillary services worldwide. The Issaquah, Washington-based company is scheduled to release its Q4 2025 results after the market closes on Thursday, S ...

Government Policy & International Relations - The Trump administration restricts Iranian diplomats in New York from accessing wholesale clubs like Costco, Sam's Club, and BJ's [1] - The State Department classifies diplomatic memberships in wholesale clubs and purchases of luxury goods as benefits requiring government approval [1] - Iran is the only country specifically targeted by this restriction [2] - The US aims to pressure Iranian diplomats by limiting their access to goods not readily available in Iran [2] Potential Implications - Iranian diplomats are known to purchase products cheaply at stores like Costco and send them back to Iran [2] - The restrictions are intended to ensure diplomats are in the US solely for diplomatic purposes [2]

Group 1 - The Trump administration is restricting Iranian diplomats from shopping at wholesale clubs like Costco during their visit to New York for the UN General Assembly, requiring government approval for such memberships [1][2] - Iranian diplomats are specifically targeted by this policy, as they are known to purchase goods unavailable in Iran and send them back home, indicating a strategic move by the U.S. to emphasize the diplomatic nature of their visit [2] Group 2 - The policy reflects broader tensions and efforts by the U.S. to exert pressure on Iranian diplomats, reinforcing the notion that their presence in the U.S. should be strictly for diplomatic purposes [2]

Core Insights - Costco is set to report its fourth-quarter earnings, following signs of decelerating sales growth earlier this year [3][9] - Analysts remain generally optimistic about Costco's ability to deliver sustainable results despite anticipated volatility in the stock [2][4][9] Financial Performance - For the fourth quarter, Costco's sales reached $84.4 billion, reflecting an 8% increase year-over-year [10] - Comparable store sales increased by 5.7% year-over-year, with analysts projecting a profit of $2.6 million, up from $2.4 million the previous year [10] Stock Performance and Market Sentiment - Costco shares have risen 2.6% this year and approximately 170% over the past five years, with a consensus target price of $1,080 from analysts [11] - The stock has experienced fluctuations, particularly between March and June, and analysts suggest that further volatility may present buying opportunities for investors [5][9]

Group 1 - Costco Wholesale Corporation (NASDAQ:COST) is currently experiencing a high price-to-earnings (PE) ratio of 53, which is considered elevated, leading to a recommendation to wait for the PE to drop below 50 before purchasing [1] - The company operates membership-based warehouses offering a diverse range of products, including groceries, appliances, apparel, and household goods, along with additional services such as fuel, pharmacies, and e-commerce [2] - Jim Cramer views Costco as a "great long-term hold," suggesting a gradual purchasing strategy rather than buying all shares at once, reflecting the company's consistent valuation over time [2] Group 2 - Despite the potential of Costco as an investment, there are AI stocks identified that may offer greater upside potential and lower downside risk, indicating a competitive investment landscape [2]

Core Insights - Costco's business model continues to justify a premium valuation despite recent share price fluctuations [1][11] - The upcoming fiscal fourth-quarter results are anticipated to reflect strong performance, with net sales growth of 8% already reported [2][11] Membership Model Power - Membership fee income rose 10.4% to $1.24 billion in Q3 FY2025, with paid households reaching 79.6 million [4] - Renewal rates remain high at 92.7% in the U.S. and Canada, and 90.2% globally, with executive members contributing 73% of sales [4] Steady Traffic and Comps - Adjusted comparable sales increased by 8% in Q3, with traffic up 5.2% and e-commerce sales up 14.8% [5] - August sales results indicate mid-single-digit comp growth, with U.S. comps up 5.1% and international comps up 8.6% [5] Price Leadership at Scale - Costco maintains competitive pricing despite macroeconomic challenges, aided by sourcing strategies and Kirkland brand products [7] - The company's scale and limited SKU count help keep operating costs low, enhancing value and customer traffic [7] Room to Keep Expanding - Costco ended Q3 with 905 warehouses and plans to reach approximately 914 locations by fiscal year-end, indicating significant growth potential [8][9] - Trailing-52-week net sales reached roughly $271 billion, up from $252 billion a year earlier [8] Cash Returns and Flexibility - Operating cash flow for the first 36 weeks of FY2025 was $9.47 billion, with cash and equivalents at $13.84 billion [10] - The board raised the quarterly dividend by 12% to $1.30 per share, with special dividends possible in the future [10] Valuation - Shares trade around $943, reflecting a price-to-earnings multiple of 53 to 54 times earnings and a dividend yield of approximately 0.6% [11] - The current premium valuation is close to the limits of what growth can sustain, with strengths in recurring fee income, traffic, price leadership, unit expansion, and cash generation justifying the high premium [11]

Core Insights - Costco Wholesale Corp. demonstrated steady sales growth in August, reflecting strong consumer demand across various categories [1] - The company reported a 6.9% year-over-year increase in consolidated comparable sales, with notable growth in U.S. (6.7%), Canada (9.4%), and international markets (5.3%), alongside an 18.3% surge in e-commerce [1][2] Sales Performance - Traffic trends remained robust, with worldwide visits up approximately 4% and U.S. traffic increasing by 4.3%, indicating continued strength in food, sundries, and nonfood items [2] - The sales growth was slightly impacted by gasoline price deflation, which trimmed about 60 basis points from reported sales [4] Analyst Ratings and Forecasts - Raymond James reaffirmed an Outperform rating for Costco ahead of its fiscal fourth-quarter earnings release, citing the company's scale, supply-chain efficiency, and loyal membership base as advantages in managing tariff and inflation risks [3][5] - Analysts adjusted the fourth-quarter EPS estimate to $5.83 from $5.90, while maintaining the fiscal year 2026 EPS forecast at $20.20 [3][4] Valuation and Market Position - Costco's stock trades at approximately 52 times forward earnings, significantly above its three-year median multiple of 38, with a price forecast set at $1,070 based on an EPS estimate of $21.80 for fiscal year 2027 [5][6] - The company's consistent market share gains and durable earnings growth support its premium valuation in the market [6]