Core Insights - Costco Wholesale Corporation has established a dual growth engine through its expanding digital capabilities and global warehouse network, with digitally enabled comparable sales increasing by 20.5% in Q1 FY26 [1] - The company plans to open 28 net new warehouses in FY26 and aims for 30 or more annual openings in subsequent years, enhancing its physical presence [2][9] Digital Growth - E-commerce site traffic rose by 24%, and the average order value increased by 13%, indicating higher member engagement [1] - Digitally enabled comparable sales surged to 34.4% in January, contributing to an overall net sales growth of 9.3% for the retail month [1] Physical Expansion - Costco achieved a 3.1% increase in worldwide comparable traffic and a 3.2% rise in comparable ticket size during the first quarter [2] - New warehouses opened in FY25 are generating an annualized $192 million in sales per location, up from $150 million two years prior [3] Technology Integration - Initiatives like the Costco Digital Wallet and pre-scanning technology are improving checkout productivity, with speeds increasing by up to 20% in some locations [4] - The integration of technology is enhancing the member experience and driving more items into baskets, increasing visit frequency both online and in person [4] Industry Comparisons - The dual growth strategy observed at Costco is also a focus for Dollar General and BJ's Wholesale, with both companies expanding their digital reach and physical presence [5][6][7] Financial Performance - Costco's shares have increased by 18.1% year to date, outperforming the industry's growth of 12.4% [8] - The Zacks Consensus Estimate indicates year-over-year growth of 8% in sales and 12.2% in earnings per share for the current financial year [11] Valuation Metrics - Costco's forward 12-month price-to-earnings ratio is 48.4, higher than the industry average of 33.70 [10]

Core Viewpoint - The U.S. Supreme Court is set to rule on President Trump's tariff regime, with a low probability of a favorable outcome for the tariffs, which could lead to significant refunds and changes in trade policy [1]. Group 1: Legal Actions and Stakeholders - Costco Wholesale Corp. has initiated a lawsuit for a full refund of duties collected under the International Emergency Economic Powers Act (IEEPA) [2]. - Apple Inc. and Nike Inc., while not directly involved in the lawsuit, are significantly affected due to their reliance on Asian manufacturing [2]. Group 2: Financial Impact - U.S. households are projected to experience an average tax increase of $1,000 in 2025, escalating to $1,300 in 2026 due to the tariffs [3]. - The U.S. Customs and Border Protection (CBP) reported over $200 billion collected in tariffs from January 20 to December 15, 2025, with the Tax Foundation estimating a total customs revenue of $264 billion for 2025, resulting in a net gain of approximately $132 billion after accounting for economic drag [3]. Group 3: Future Projections - Tariffs are expected to generate $171.1 billion in 2026, representing 0.54% of GDP, marking the largest federal tax increase since 1993 [4]. Group 4: Next Steps and Market Reactions - The Supreme Court's oral arguments were heard on November 5, 2025, with a longer-than-usual wait for a decision [5]. - Treasury Secretary Scott Bessent indicated that if the administration loses, it could recreate the tariff structure using various legal authorities, and the ruling may result in a complex outcome regarding what is permissible [5]. - Following the announcement of tariffs in April 2025, the S&P 500 experienced significant declines, with the Nasdaq dropping 1,600 points, marking the worst sell-off since the COVID-19 pandemic began [5].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill this potential is challenging [1] Group 1: Company Overview - BJ's Wholesale Club is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects [2] - The company holds a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being highly desirable as it signals strong future prospects [4] - BJ's historical EPS growth rate is 8%, but projected EPS growth for this year is 7.1%, surpassing the industry average of 6.3% [5] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6] - BJ's year-over-year cash flow growth is 5.3%, significantly better than the industry average of -3.5% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 17.1%, compared to the industry average of 4.4% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [8] - BJ's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 0.2% over the past month [9] Group 5: Investment Positioning - BJ's has achieved a Zacks Rank of 2 and a Growth Score of B, positioning it well for potential outperformance in the market [11]

Core Viewpoint - Investors are encouraged to regularly reassess their portfolios, considering whether to buy, sell, or hold stocks like Costco Wholesale, which has shown strong performance but may require evaluation in light of changing market conditions [1][2]. Company Performance - Costco has produced a total return of 188% over the past five years, indicating strong historical performance [2]. - The company continues to show solid same-store sales growth, with a 3.1% increase in traffic reported for the first quarter of fiscal 2026 [5]. - Analysts project Costco's revenue to grow at a compound annual rate of 7.6% from fiscal 2025 to fiscal 2028, supported by plans for at least 30 new warehouse openings annually [6]. Market Position - Costco shares are currently trading at a price-to-earnings ratio of 52.9, which is 106% higher than the S&P 500 index and represents significant premiums over competitors like Walmart and BJ's Wholesale [9]. - Despite trading 8% below its peak, Costco's stock has appreciated by 15% in 2026, reflecting the market's premium valuation of the company due to its predictable financial performance [8]. Investment Recommendation - The current assessment suggests that Costco stock is not a buy at this moment, but existing shareholders should hold their positions due to the company's strong fundamentals [10].

Costco Wholesale (NasdaqGS:COST) 2025 Update Summary Industry Overview - The call discusses the retail performance of Costco Wholesale for the month of January 2026, comparing it to the same period in 2025 [1] Key Financial Metrics - **Net Sales**: $21.33 billion, a 9.3% increase from $19.51 billion in January 2025 [2] - **Comparable Sales**: - U.S.: 5.8% - Canada: 11.4% - Other International: 9.5% - Total Company: 7.1% - Digitally Enabled: 34.4% [2] - **Comparable Sales Excluding Gas and FX**: - U.S.: 6.8% - Canada: 8.2% - Other International: 2.7% - Total Company: 6.4% - Digitally Enabled: 33.1% [3] - **Traffic Growth**: Up 2.4% worldwide and 2.2% in the U.S. [3] Impact of External Factors - Lunar and Chinese New Year shifts negatively impacted sales by approximately 4% for other international and 0.5% for total company sales [3] - Foreign currency fluctuations positively impacted sales: - Canada: +4.8% - Other International: +7.6% - Total Company: +1.7% [4] - Gas price deflation negatively impacted total reported comparable sales by approximately 100 basis points, with an average worldwide selling price per gallon down 9.6% year-over-year [4] Regional Performance - Strongest comparable sales in the U.S. were observed in the Midwest, Southeast, and Texas [4] - Best performing international markets included Australia, the United Kingdom, and Mexico [4] Merchandising Highlights - **Food and Sundries**: Positive mid-single digits - **Fresh Foods**: Up mid-single digits, with bakery and meat performing well - **Non-Foods**: Positive low double digits, with jewelry, tires, and majors as top performers - **Ancillary Business Sales**: Up low to mid-single digits, with pharmacy, food court, and hearing aids as top performers - **Gas Sales**: Down mid to high single digits due to price changes [5] Future Outlook - The next reporting period will cover February 2 to March 1, 2026, compared to February 3 to March 2, 2025 [5]

Core Insights - Costco has launched an exclusive Nike collaboration sneaker, the Nike SB Dunk Low x Kirkland Signature Exclusive, which has generated significant excitement among customers and the resale market [1][11] - The sneaker was released at select locations in New York, Oregon, California, and Washington for a retail price of $134.99 [1] - The resale value of the sneaker has surged to approximately 200% or more, with prices ranging from $400 to $1,000 on platforms like StockX, eBay, and GOAT [2] Product Details - The sneakers feature Kirkland emblems and are designed in a gray colorway, resembling sweatshirt material, with an inner lining that mimics the texture of worn sweaters [5] - The design includes a label on the reverse side of the tongue that resembles Costco's in-store price tags, indicating a retail price of $135.00, which may suggest low stock availability [7] - The insole displays a large Kirkland logo, and the reverse side features an image of Costco's hot dogs with a price tag of $1.50 [9] Market Response - Over the weekend, 660 pairs of the sneakers were resold on StockX, with the highest sale reaching $600 [10] - The sudden release follows a previous leak of the collaboration, which had left fans speculating about various aspects of the product [11]

Core Viewpoint - BJ's Wholesale Club Holdings, Inc. will release its financial results for the fourth quarter of fiscal 2025 on March 5, 2026, before the market opens [1] Financial Performance Announcement - The company will hold a conference call on the same day at 8:30 a.m. ET to discuss its financial performance [1] - A live audio webcast of the call will be accessible under the "Events & Presentations" section of the company's investor relations page [1]

Core Insights - BJ's Wholesale Club Holdings, Inc. is accelerating its digital transformation to enhance member engagement and drive revenue growth through expanded omnichannel capabilities and digital tool integration [1] Digital Performance - There was a 30% year-over-year increase in digitally enabled comparable sales during Q3 of fiscal 2025, contributing to a two-year stacked growth of 61%, showcasing the effectiveness of technology investments [2][9] - More than 90% of BJ's digital orders are fulfilled directly through clubs, enhancing service speed and operational control, which deepens member engagement [3] Member Engagement and Revenue - The BJ's mobile app is a critical tool for member engagement, facilitating digital coupon clipping, product location, and deli item preordering, leading to a record membership fee income of $126.3 million in Q3, a 9.8% increase year-over-year [4][9] - Membership remains the primary growth engine, with the company maintaining 8 million members and achieving a higher-tier membership penetration of 41%, up 50 basis points sequentially, alongside a strong renewal rate of 90% [5] Growth Strategy - Management emphasizes the integration of digital capabilities with physical locations as essential for sustained growth, with plans to open seven new clubs in Q4 of fiscal 2025 and a target of 25 to 30 new clubs over the next two fiscal years [6]

Core Viewpoint - BJ's Wholesale Club is expanding its presence in Tennessee with the opening of a new location in Chattanooga on January 30, enhancing its market footprint in the region [1] Company Expansion - The new BJ's location in Chattanooga will be the sixth club in Tennessee, indicating the company's growth strategy in the state [1] - The club is situated at 401 Northgate Mall Drive, strategically positioned to attract local customers [1] Additional Services - The on-site BJ's Gas station, which opened on January 14, offers everyday low fuel prices and potential savings through the BJ's Fuel Savers Program, adding value to the customer experience [1] - BJ's aims to provide unbeatable value on everyday essentials, emphasizing convenience for its members [1]

Core Insights - Costco Wholesale enters 2026 with strong membership growth, high renewal rates, and steady business compounding, but the stock trades at a premium valuation with elevated expectations [1][2] Membership Growth - Membership revenue reached $5.3 billion in 2025, driven by increased paid memberships and a fee hike in late 2024, with global renewal rates near 90% [4] - In 2026, the focus will be on maintaining membership momentum without another fee increase, emphasizing the need for growth through volume rather than pricing [5] - Continued growth in paid memberships and stable renewal rates in newer markets will indicate the strength of Costco's membership value proposition [6] International Expansion - Costco's growth increasingly relies on international markets, with over 900 warehouses globally and significant potential in high-income regions like China [7] - The challenge for 2026 is not just opening more international warehouses but ensuring they develop high-quality, high-renewal membership bases similar to North America [8] - Investors will monitor paid memberships and renewal rates in newer markets, as store openings become less critical compared to renewal rates, margins, and returns [9]