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]

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]

Core Viewpoint - The government shutdown is expected to have a significant impact on consumer spending and certain retail stocks, particularly as the holiday shopping season approaches [1][4]. Market Performance - Initial market reactions included a dip, but there is a recovery as the market adjusts to the anticipated short duration of the shutdown, likely between one week to ten days [2][3]. Impact on Employment and Consumer Spending - Approximately two million federal employees may face furloughs, which could affect consumer spending and the housing market, especially if mass layoffs occur [3][4]. - The duration of the shutdown and potential mass layoffs will be critical factors influencing consumer behavior and spending patterns [4][7]. Holiday Shopping Season - The holiday shopping season is set to begin in early to mid-October, and any mass layoffs could quickly impact holiday spending [5][6]. - Retail forecasts from organizations like the National Retail Federation and Mastercard will be closely monitored for adjustments due to the shutdown [7]. Consumer Behavior and Retail Preferences - In a tightening economic environment, consumers are likely to gravitate towards cost-conscious retailers such as Costco, Walmart, and TJX, which offer better value [8][9]. - Retailers like Target and traditional department stores may be more vulnerable due to their positioning in the market [10][11]. Retailer Performance Outlook - Costco is highlighted as a strong performer due to its one-stop shopping model and focus on fresh foods, which appeals to consumers during the holiday season [12][15]. - Holiday spending is projected to increase by 3.4%, with Costco expected to outperform this figure based on its ability to capture consumer wallet share [17][18]. Demographic Spending Trends - There are concerns that Gen Z may reduce their holiday spending by 25% if the shutdown persists, reflecting broader consumer sentiment [19][20]. - The overall impact of the shutdown could lead to a general tightening of spending across various demographic groups, not just Gen Z [20][21].

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].

Core Insights - Costco's total comparable sales increased by 5.8% in June, driven by strong demand for fresh foods and non-food categories such as jewelry, major appliances, and gift cards [1] - The retailer's net sales rose by 8.0% to reach $26.44 billion during the retail month of June [3] Sales Performance by Region - In the United States, sales increased by 4.7%, while in Canada, sales rose by 6.7%, and in other international markets, sales grew by 10.9% [2] eCommerce Growth - Costco's eCommerce sales experienced an increase of 11.5% for the month [2] Sales by Category - Comparable sales in June showed high-single-digit growth in fresh foods, mid- to high-single-digit growth in non-foods, and mid-single-digit growth in June foods and sundries [4] - The ancillary business sales declined by low-single digits, and gas sales decreased by mid- to high-single digits [5] Consumer Behavior Trends - High-income consumers are increasingly seeking value, with affluent members trading down to private-label goods and lower-cost proteins [6] Delivery Enhancements - Costco partnered with Instacart to enhance delivery options, including Priority Delivery for faster service and No-Rush Delivery for scheduled orders [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]