Costco Q4 Sales Hit $84.4B: What's Fueling the 8% Revenue Growth?

Financial Performance - Costco Wholesale Corporation reported net sales of $84.4 billion for Q4 of fiscal 2025, an 8% increase from $78.2 billion in the previous year, driven by strong comparable sales and e-commerce contributions [1][9] - For the fiscal year, total net sales reached $269.9 billion, reflecting an 8.1% increase despite economic challenges [5][9] Comparable Sales - Comparable sales rose 5.7% in Q4, with a 5.1% gain in the U.S., 6.3% in Canada, and 8.6% in other international markets; excluding gasoline and foreign exchange impacts, total comparable sales increased by 6.4% [2] - Canada led with an 8.3% increase in comparable sales, followed by 7.2% in other international markets and 6% in the U.S. [2] E-commerce Growth - E-commerce comparable sales surged 13.6% in Q4, with an even stronger 18.4% increase in August; for the fiscal year, e-commerce sales climbed 15.6% [3][9] - The company's investments in omnichannel capabilities have reinforced the importance of e-commerce in driving sales growth [3] Global Presence - At the end of the quarter, Costco operated 914 warehouses globally, including 629 in the U.S. and Puerto Rico, and 110 in Canada, with expanding operations in Mexico, Japan, and the UK [4] Industry Context - Walmart reported a 4.6% increase in U.S. comparable sales for Q2 of fiscal 2026, with strong e-commerce growth of 26% [6] - Target showed signs of stabilization with a 0.9% year-over-year sales dip in Q2, but digital sales grew 4.3% [7] Stock Performance - Costco's stock has increased by 7.5% over the past year, outperforming the industry growth of 6.9% [8] Valuation Metrics - Costco's forward 12-month price-to-earnings ratio is 48.45, higher than the industry average of 30.80, indicating a relatively high valuation [10] - The Zacks Consensus Estimate suggests year-over-year growth of 8.1% in sales and 11.6% in earnings per share for the current financial year [11]