Core Membership Model - Costco's worldwide membership renewal rate decreased to 89.8% in Q4 of fiscal 2025 from 90.2% in the previous quarter, with U.S. and Canada rates at 92.3%, down 40 basis points sequentially [1][9] - The decline is linked to an increase in online sign-ups, particularly from a Groupon campaign in December 2023, which attracted younger members [2][9] - Nearly half of new members are under 40, indicating a generational shift in the membership base [3][9] Digital Expansion and Member Engagement - Management views the rise in online membership as a positive trend, despite slightly lower renewal rates for these members, as it broadens Costco's demographic reach [2][4] - The company faces the challenge of effectively engaging digital-first shoppers through auto-renewal programs and targeted communication to enhance brand loyalty [3][4] Financial Performance - Costco reported a 14% year-over-year increase in membership fee income in Q4 of fiscal 2025, totaling $1,724 million [5] - The stock has increased by 4.7% over the past year, underperforming the industry growth of 6.9% [8] - Costco's forward 12-month price-to-earnings ratio is 46.02, significantly higher than the industry average of 29.94, indicating a lower Value Score of D [10] Sales and Earnings Estimates - The Zacks Consensus Estimate projects Costco's current financial-year sales and earnings per share to grow by 7.7% and 11%, respectively [11] - Current quarter sales are estimated at $67.20 billion, with year-over-year growth of 8.12% [14] - Earnings per share for the current quarter are estimated at $4.24, reflecting a year-over-year growth of 10.99% [15]