Costco's Fourth-Quarter Sales Growth Eases From Third Quarter
Fourth-quarter net sales rose 11.2% to $93.9 billion, a slower year-over-year pace than the third quarter's 11.6% increase.
Costco Wholesale (COST) reported net sales of $93.9 billion for the 16-week fourth quarter ended August 30, 2026, up 11.2% from a year earlier, a slower year-over-year pace than the 11.6% increase in the third quarter.
The warehouse club’s total-company comparable sales were 9.4% in the fourth quarter, down from 9.8% in the third quarter. Adjusted comparable sales, excluding gasoline prices and foreign exchange, were 6.7%, versus 6.6% in the prior quarter.
U.S. comparable sales were 10.7%, down from 9.4% in the third quarter. Adjusted U.S. comps were 7.2%, versus 6.8%. Canada comparable sales were 5.0%, down from 10.7% in the third quarter. Adjusted Canada comps were 4.6%, versus 6.2%. Other International comparable sales were 7.0%, down from 11.2% in the third quarter. Adjusted Other International comps were 6.2%, versus 5.9%.
Digitally enabled comparable sales were 19.5%, down from 21.5% in the third quarter. Adjusted digitally enabled comps were 19.8%, versus 20.8%. The company’s top digital sales-growth categories included pharmacy, home furnishings, small electrics, hardware, housewares and domestics. E-commerce site and app traffic rose 30%.
Comparable traffic was 3.3% and comparable ticket was 5.9% in the fourth quarter. Adjusted comparable ticket was 3.3%.
Net income was $2.998 billion, or $6.75 a share, up 14.9% from a year earlier. The quarter included a non-recurring benefit of $0.15 a share from IEEPA tariff refunds received in the period, less partial reinvestment of those refunds in increased member values. Excluding that benefit, net income grew 12.3% and EPS grew 12.4%.
Gross margin was 11.02%, down 11 basis points from the year-earlier quarter, or up 20 basis points excluding the gasoline-price impact. SG&A was 8.94%, up 27 basis points, or up 2 basis points excluding the gas impact.
Worldwide membership renewal rate was 89.8%. Total cardholders were 150.4 million, up 3.6%. Executive memberships were 42.3 million, up 7.7%. Paid memberships were 84.1 million, up 3.8%. Membership income grew 7.3%, or 7.7% excluding foreign exchange. Executive members accounted for 75.6% of sales.
Costco operated 939 warehouses at fiscal year-end 2026, including 647 in the United States and Puerto Rico, 115 in Canada, 43 in Mexico, 37 in Japan, 29 in the United Kingdom, 20 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, three in France, two in Sweden, and one each in Iceland and New Zealand. The company estimates 967 warehouses at the end of fiscal 2027.
For the 52-week fiscal year ended August 30, 2026, net sales increased 10.1% to $297.2 billion. Fiscal-year net income was $9.226 billion, or $20.76 a share.
Cash and cash equivalents were $20.21 billion at year-end. Operating cash flow for the fiscal year was $15.83 billion. Additions to property and equipment were $6.44 billion. The company paid $2.46 billion in cash dividends and repurchased $848 million of common stock.
Membership fees for the quarter were $1.85 billion. Total revenue was $95.72 billion. Operating income was $3.80 billion.
New member values in the quarter included lower everyday prices on items such as Kirkland Signature walnuts, Colombian whole-bean coffee, dry facial towels and coarse black pepper, and new items including ultra-filtered lactose-free milk, 1-ounce silver bars, pretzel sandwiches and Japanese matcha green tea powder.