Costco Wholesale (COST) 2025 Update Summary Industry Overview - The call pertains to the retail industry, specifically focusing on Costco Wholesale's performance during the five-week retail month of June 2025. Key Financial Metrics - **Net Sales**: Reported net sales for June 2025 were $26.44 billion, representing an 8% increase from $24.48 billion in June 2024 [2] - **Comparable Sales**: - US: 4.7% - Canada: 6.7% - Other International: 10.9% - Total Company: 5.8% - E-commerce: 11.5% [2] - **Comparable Sales Excluding Gas and FX**: - US: 5.5% - Canada: 7.9% - Other International: 8.2% - Total Company: 6.2% - E-commerce: 11.2% [3] Traffic and Transaction Insights - **Traffic Growth**: Comp traffic increased by 3.4% worldwide and 2.8% in the US [4] - **Average Transaction Value**: - Worldwide average transaction value increased by 2.4%, and by 2.8% when excluding gas deflation and foreign exchange impacts [5] Regional Performance - **Strongest US Regions**: Northwest, Midwest, and Southeast showed the best comparable sales performance [5] - **International Performance**: Australia, Mexico, and Taiwan reported the strongest results among other international markets [6] Merchandising Highlights - **Food Categories**: - Foods and sundries showed positive mid-single-digit growth - Fresh foods increased by high single digits, with meat and produce being top performers [6][7] - **Non-food Categories**: - Positive mid to high single-digit growth, with jewelry, majors, and gift cards performing well [7] - **Ancillary Business Sales**: Experienced a decline in low single digits, while pharmacy, hearing aid, and optical departments were top performers [8] External Factors Impacting Sales - **Gas Price Deflation**: Negatively impacted total reported comparable sales by approximately -0.9% [4] - **Foreign Currency Impact**: - Canada: +0.2% - Other International: +3.4% - Total Company: +0.5% [4] Future Outlook - The next reporting period will cover four weeks from July 7 to August 3, 2025, compared to the same period in 2024 [8]

Company and Industry Summary Company Overview - The company reported net sales of **$20.97 billion** for the month, representing an increase of **6.8%** from **$19.64 billion** in the same period last year [3] Sales Performance - Comparable sales results for the month were as follows: - **U.S.**: **4.1%** - **Canada**: **3.3%** - **Other International**: **6.6%** - **Total Company**: **4.3%** - **E-commerce**: **11.6%** [3] - When excluding impacts from changes in gasoline prices and foreign exchange, comparable sales were: - **U.S.**: **5.5%** - **Canada**: **6.3%** - **Other International**: **8.4%** - **Total Company**: **6%** - **E-commerce**: **12%** [4] Traffic and Transaction Insights - Comparable traffic or frequency increased by **3.4%** worldwide and **2.8%** in the U.S. [4] - The average worldwide selling price per gallon of gas decreased by approximately **10.4%** year-over-year [5] - Average transaction value increased by **0.9%**, and when excluding gas deflation and foreign exchange, it was up **2.5%** [5] Regional Performance - Strongest comparable sales in the U.S. were observed in the **Northwest**, **Midwest**, and **Los Angeles** regions [6] - Internationally, the best results were in **Mexico**, **Taiwan**, and **Korea** [6] Merchandising Highlights - Foods and sundries showed positive mid to high single-digit growth, with strong performance in: - **Cooler** - **Candy** - **Frozen Foods** - Fresh foods increased by high single digits, particularly in: - **Meat** - **Bakery** - Non-foods also performed well with mid single-digit growth, especially in: - **Jewelry** - **Majors** - **Gift Cards** - Ancillary business sales declined by low to mid single digits, while pharmacy, optical, and hearing aid departments were top performers [7][8] Challenges and Risks - The negative impact of foreign currencies on total and comparable sales was approximately: - **Canada**: **-1.6%** - **Other International**: **-1.0%** - **Total Company**: **-0.4%** [5] - Gas price deflation negatively impacted total reported comparable sales by approximately **-1.3%** [5] - The negative impact of cannibalization was approximately **-70 basis points** for the company in May [6] Future Outlook - The upcoming June reporting period will include five weeks, starting from June 2 and ending July 6, compared to the previous year's five weeks from June 3 to July 7 [8]