Costco Wholesale (NasdaqGS:COST) 2025 Update Summary Industry Overview - The conference call pertains to the retail industry, specifically focusing on Costco Wholesale's sales performance for the month of September 2025. Key Financial Metrics - **Net Sales**: $26.58 billion, an increase of 8% from $24.62 billion in September 2024 [2] - **Comparable Sales**: - US: 5.1% - Canada: 6.3% - Other International: 8.5% - Total Company: 5.7% - Digitally Enabled: 26.1% [2][3] - **Traffic Growth**: Comparable traffic increased by 2.1% worldwide and 1.4% in the US [4] - **Average Transaction Value**: Increased by approximately 3.5%, with a 3.8% increase when excluding gas deflation and foreign exchange impacts [5] Sales Performance Insights - **Regional Highlights**: - Strongest comparable sales in the US were observed in the Northwest, Midwest, and Los Angeles [5] - Internationally, the best results were in Korea, Australia, China, and Taiwan, driven by holiday shifts [6] - **Merchandising Performance**: - Food and sundries: Positive mid-single digits - Fresh foods: Up mid to high single digits, with strong performance in meat and bakery [6] - Non-foods: Positive high single digits, with jewelry, majors, and health and beauty performing well [7] - Ancillary business sales: Up mid-single digits, with pharmacy, hearing aid, and optical as top performers [7] External Factors Impacting Sales - **Gas Price Deflation**: Remained relatively flat, negatively impacting total reported comparable sales by less than 10 basis points [4] - **Foreign Exchange Impact**: - Canada: Negative impact of approximately -2.5% - Other International: Positive impact of approximately +1% - Total Company: Negative impact of approximately -0.2% [4] Future Outlook - The next reporting period will cover four weeks from October 6 to November 2, 2025, compared to the same period in 2024 [8]

Costco Wholesale (COST) 2025 Update Summary Industry and Company Overview - The call pertains to Costco Wholesale, a leading retail company, focusing on its sales results for August 2025 and providing forward-looking statements regarding its performance and market conditions [1][2]. Core Points and Arguments - **Sales Performance**: - Net sales for August 2025 reached $21.56 billion, marking an increase of 8.7% from $19.83 billion in August 2024 [2]. - Comparable sales growth was reported as follows: - US: 6.1% - Canada: 6.8% - Other International: 6.7% - Total Company: 6.3% - E-commerce: 18.4% [2][3]. - **Comparable Sales Excluding Gas and FX**: - US: 6.7% - Canada: 9.4% - Other International: 5.3% - Total Company: 6.9% - E-commerce: 18.3% [3]. - **Traffic Growth**: - Comparable traffic increased by 4% globally and 4.3% in the US [3]. - **Impact of Foreign Currencies**: - The US dollar's fluctuations affected sales: - Canada: -1.2% - Other International: +1.7% - Total Company: +0.1% [4]. - **Gas Price Deflation**: - Gas price deflation negatively impacted total reported comparable sales by approximately -0.6%, with the average worldwide selling price per gallon down by about -5.2% year-over-year [4]. - **Average Transaction Value**: - The average transaction value increased by 2.2% worldwide, and by 2.7% when excluding gas deflation and foreign exchange impacts [4]. Regional and Merchandising Highlights - **Regional Performance**: - Strongest comparable sales in the US were observed in the Midwest, Southeast, and Northwest regions. - Internationally, Australia, Taiwan, and the UK showed the best results [5]. - **Cannibalization Impact**: - The negative impact of cannibalization on total company sales was approximately -60 basis points [5]. - **Merchandising Categories**: - Food and sundries showed positive mid-single-digit growth. - Fresh foods increased by mid to high single digits, with strong performance in meat and produce. - Non-foods experienced high single-digit growth, particularly in jewelry, majors, and garden categories. - Ancillary business sales rose by low single digits, with optical, pharmacy, and hearing aids being top performers. - Gas sales declined by mid-single digits due to price changes [6][7]. Future Outlook - The September reporting period will cover five weeks from September 1 to October 5, 2025. - Q4 and total year FY 2025 earnings will be released on September 25, 2025, with a conference call scheduled for 2 PM PT [8]. Additional Information - The call will remain available until 4 PM Pacific Time on September 11, 2025 [9].