Costco Wholesale (NasdaqGS:COST) 2025 Update Summary Industry Overview - The conference call pertains to the retail industry, specifically focusing on Costco Wholesale's performance during the month of October 2025. Key Financial Metrics - **Net Sales**: Reported net sales for October 2025 were $21.75 billion, representing an increase of 8.6% from $20.03 billion in October 2024 [2] - **Comparable Sales**: - Total company comparable sales increased by 6.6% - US comparable sales increased by 6.6% - Canada comparable sales increased by 6.3% - Other international comparable sales increased by 7.2% - Digitally enabled sales increased by 16.6% [2][3] Sales Performance Analysis - **Excluding Gas and FX**: - Comparable sales excluding the impacts from gasoline prices and foreign exchange were as follows: - US: 6.7% - Canada: 8.8% - Other International: 5.1% - Total Company: 6.8% - Digitally enabled: 16.7% [3] - **Traffic Growth**: Comp traffic increased by 3.6% worldwide and 3.7% in the US [3] Regional Performance - **Strongest Regions**: The Midwest, Southeast, and Northeast regions in the US showed the strongest comparable sales [4] - **International Performance**: Australia, Taiwan, and Japan reported the best results among other international markets [4] Product Category Highlights - **Food and Sundries**: Positive mid to high single-digit growth, with strong performance in candy, food, and cooler categories [5] - **Fresh Foods**: Increased mid to high single digits, particularly in meat and bakery departments [6] - **Non-Foods**: Positive mid single-digit growth, with jewelry, health and beauty, and majors performing well [6] - **Ancillary Businesses**: Sales were up mid to high single digits, with pharmacy, food court, and hearing aids being top performers [6][7] Other Notable Information - **Gas Prices**: The average worldwide selling price per gallon decreased by 2% compared to last year, impacting overall sales [4] - **Cannibalization Impact**: The negative impact of cannibalization was approximately 60 basis points for the total company [5] - **Future Reporting Period**: The next reporting period will cover the four weeks from November 3 to November 30, 2025 [7]

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]

Summary of Conference Call Company Overview - The conference call was led by Andrew Yoon, director of finance and investor relations, discussing sales results for the retail month of April, comparing it to the same period last year [1] Key Financial Metrics - Net sales for April reached $21.18 billion, marking a 7% increase from $19.8 billion in the previous year [2] - The month had one less shopping day compared to last year due to the shift in Easter, negatively impacting total and comparable sales by approximately 1.5% to 2% [2] Comparable Sales Performance - Reported comparable sales for April were as follows: - US: 5.2% - Canada: 1.5% - Other International: 3.2% - Total Company: 4.4% - E-commerce: 12.6% [3] - Comparable sales excluding impacts from gasoline prices and foreign exchange were: - Total Company: 6.7% - E-commerce: 13% [3] - Comp traffic increased by 4.2% worldwide and 5% in the US [3] Impact of External Factors - Foreign currency fluctuations negatively impacted total and comparable sales: - Canada: -1.6% - Other International: -2.5% - Total Company: -0.6% [3] - Gas price deflation negatively impacted total reported comparable sales by approximately -1.7%, with the average worldwide selling price per gallon down about 13.4% year-over-year [4] Regional Performance - Strongest comparable sales in the US were observed in the Midwest, Northeast, and Southeast regions [5] - Internationally, the best results were seen in Mexico, Korea, and Taiwan [5] Merchandise Highlights - Foods and sundries showed positive high single-digit growth [5] - Better performing departments included: - Fresh foods: high single digits - Meat and bakery: strong performance - Non-foods: mid to high single digits, with jewelry, majors, and home furnishings performing well [6] - Ancillary business sales were down mid to high single digits, while pharmacy, optical, and food court were the top performers [7] Future Outlook - The May reporting period will cover the four weeks beginning May 5 and ending June 1, compared to the same period last year [7]