Financial Data and Key Metrics Changes - Net income for Q1 2026 was $2.001 billion, or $4.50 per diluted share, up from $1.798 billion, or $4.04 per diluted share in Q1 2025, reflecting a 13.6% growth excluding discrete tax items [14][15] - Net sales increased by 8.2% to $65.98 billion from $60.99 billion in the previous year, with comparable sales growth of 6.4% [15][16] - Membership fee income rose to $1.329 billion, a 14% increase year over year, driven by membership growth and fee increases [16][17] Business Line Data and Key Metrics Changes - Digital sales saw a significant increase, with digitally enabled comparable sales growing by 20.5% [15][25] - Fresh sales were up mid to high single digits, with double-digit growth in meat categories [22][24] - Non-foods had comparable sales in the mid-single digits, with strong performance in categories like gold jewelry and health and beauty [23][24] Market Data and Key Metrics Changes - Traffic increased by 3.1% worldwide, and average transaction size rose by 3.2% [15] - The U.S. and Canada renewal rate was 92.2%, and the worldwide rate was 89.7%, both slightly down from the previous quarter [17] - Digital engagement metrics showed a 24% increase in website traffic and a 48% increase in app traffic [25][78] Company Strategy and Development Direction - The company plans to open 30-plus new warehouses annually in the future, with a total of 921 warehouses worldwide [5][6] - A focus on technology integration aims to enhance member experience and operational efficiency, including AI applications in inventory management [10][56] - The company is committed to maintaining competitive pricing while investing in technology and member services [34][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in consistent sales growth patterns despite some monthly fluctuations due to external factors [39] - The company is optimistic about future expansion opportunities, particularly in international markets [64][84] - Management acknowledged challenges with healthcare costs impacting productivity but remains focused on leveraging SG&A in the future [92][93] Other Important Information - Capital expenditures for Q1 were approximately $1.53 billion, with an estimated $6.5 billion for the full year [20][22] - The company reported record sales in various categories during the holiday season, including a significant increase in food court sales [22][27] - The company continues to adapt its product assortment to mitigate tariff impacts and enhance value for members [28][29] Q&A Session Summary Question: Observations on Costco's willingness to embrace technology and reinvestment strategies - Management confirmed a focus on technology integration and emphasized the importance of maintaining competitive pricing for members [32][34] Question: Concerns about traffic and the need to invest in pricing - Management noted consistent sales growth patterns and emphasized the importance of delivering value and quality to members [39][41] Question: Membership growth strategies with upcoming warehouse openings - Management indicated a balanced approach to new openings, focusing on both established and new markets [46][48] Question: Insights on retail media and digital advertising opportunities - Management acknowledged the potential of retail media and emphasized the importance of enhancing member experience through targeted marketing [50][52] Question: Warehouse openings and remodel philosophy - Management highlighted a strong pipeline for international growth and discussed the significant uplift from warehouse relocations and remodels [84][86] Question: Dynamics of SG&A leverage and productivity outlook - Management discussed headwinds affecting productivity, including healthcare costs, but expressed optimism about future leverage opportunities [92][93]

Financial Data and Key Metrics Changes - Net income for Q1 2026 was $2.001 billion, or $4.50 per diluted share, up from $1.798 billion, or $4.04 per diluted share in Q1 2025, reflecting a growth of 11.3% [12] - Net sales increased by 8.2% to $65.98 billion from $60.99 billion in the same quarter last year [13] - Comparable sales grew by 6.4%, with digital sales showing a significant increase of 20.5% [13][24] - Membership fee income rose to $1.329 billion, a 14% increase year over year [14] Business Line Data and Key Metrics Changes - Fresh sales were up mid to high single digits, with double-digit growth in meat categories [20] - Non-foods had comparable sales in the mid-single digits, with strong performance in health and beauty, gold jewelry, and small appliances [21] - Pharmacy scripts filled grew in the mid-teens, contributing to improved margins [9][10] Market Data and Key Metrics Changes - Traffic increased by 3.1% worldwide, and average transaction size rose by 3.2% [13] - The U.S. and Canada renewal rate was 92.2%, with a slight decline in overall renewal rates due to an increase in online memberships [16][52] Company Strategy and Development Direction - The company plans to open 30-plus new warehouses annually in the future, with a total of 921 warehouses worldwide [4][5] - Digital initiatives focus on enhancing member experience and driving sales through technology, including AI integration in inventory management [9][10][45] - The company aims to maintain its reputation for low prices while investing in technology and member engagement [31][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in consistent sales growth and member engagement despite some monthly fluctuations [34][35] - The company is optimistic about future warehouse openings and market expansion, particularly in international markets [49][58] - Inflation trends are expected to remain stable, with mixed impacts across different product categories [26][64] Other Important Information - Capital expenditures for Q1 were approximately $1.53 billion, with an estimated total of $6.5 billion for the fiscal year [19][20] - The company reported record sales in its food court and e-commerce business during the holiday season [20][25] Q&A Session Summary Question: Has Costco embraced technology and different retail modes more under current management? - Management confirmed a focus on technology and operational efficiency, emphasizing that maintaining low prices remains a priority [30][31] Question: Are there concerns about traffic and the need to invest in pricing? - Management noted consistent member behavior and sales patterns, indicating no immediate concerns about traffic [32][35] Question: What is the outlook for warehouse openings and membership strategies? - Management indicated a balanced approach to openings, focusing on both established and new markets [39][40] Question: How is Costco leveraging digital engagement and logistics? - Management highlighted significant growth in digital traffic and ongoing enhancements to the digital experience for members [55] Question: What are the dynamics affecting SG&A leverage? - Management discussed headwinds from healthcare costs and investments in employee agreements impacting productivity [60][62] Question: How is inflation impacting sales and pricing strategies? - Management confirmed mixed inflation impacts across categories, with a focus on maintaining value for members [64][65]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Core Insights - Costco reported net sales of $65.98 billion for the quarter, reflecting an 8.2% increase from $60.99 billion in the same period last year [1] - The company experienced strong comparable sales growth of 5.9% in US stores, driven by a 2.6% increase in traffic and a 3.2% increase in transaction size [1] - Memberships grew by over 5%, reaching nearly 146 million cardholders, with a total of 923 warehouses worldwide, including 633 in the US [2] Sales Performance - The food court sold 358,000 whole pizzas for Halloween and over 4.5 million pies in the three days leading up to Thanksgiving, averaging over 7,000 pies per warehouse during that period [2] - The success of new warehouse expansions has allowed Costco to drive top-line revenue significantly above comparable sales, gaining substantial market share [3] - Openings from the last fiscal year are generating annualized sales of more than $190 million per warehouse, an increase from $150 million two years ago [3] Legal Matters - Costco filed a lawsuit against the US government seeking a refund for all tariffs paid under President Donald Trump's executive order [4]

Hi Morgan. So this is Costco's fiscal first quarter. They're they're turning in earnings per share of $4.50%.That is better than expectations for 427. Revenues also stronger than expected. This is total revenues inclusive of membership fees 67307 billion.The street was looking for 67.137% billion. Comp sales, we know we still get these from Costco regularly, but total for the quarter up 6.4%. Digitally enabled sales up 20.5%.The company did recently change how they're reporting that number. So, it's going t ...

Core Insights - Costco reported earnings per share of $4.50, exceeding expectations of $4.27 [1] - Total revenues, including membership fees, reached $67.307 billion, surpassing the anticipated $67.137 billion [1] - Comparable sales increased by 6.4% for the quarter, with digitally enabled sales rising by 20.5% [1][2] Revenue Breakdown - Membership fees included in total revenues grew by 14% year-over-year [2] - The reporting method for digitally enabled sales has changed, making comparisons to previous quarters different [2] Market Reaction - Shares of Costco experienced a slight decline following the earnings report [2]

Sales Performance - Net sales reached $66.0 billion, reflecting an 8.2% growth[4] - Comparable sales increased by 6.4%[4] - Adjusted comparable sales also grew by 6.4%[4] - Digitally-enabled comparable sales surged by 20.5%[4, 16] - Adjusted digitally-enabled comparable sales also increased by 20.5%[4, 16] - US comparable sales increased by 5.9%, Canada by 6.5%, and Other International by 8.8%[8] Financial Highlights - Gross margin was 11.32%, a 4 bps increase compared to Q1 FY'25[9] - SG&A was 9.60%, a 1 bp decrease compared to Q1 FY'25[9] - The company reported a tax benefit of $72 million, or $0.16 per diluted share, related to stock-based compensation[9] Membership Metrics - Membership income grew by 14.0%[11] - The worldwide membership renewal rate was 89.7%, with the US/CN renewal rate at 92.2%[11] - Paid memberships reached 81.4 million, a 5.2% increase[14] - Total cardholders amounted to 145.9 million, a 5.1% increase[14] - Executive memberships totaled 39.7 million, representing 74.3% penetration of sales to executive members[14] Digital Performance - Ecommerce site traffic increased by 24%[18] - Ecommerce average order value grew by 13%[18] Warehouse Expansion - The company plans to increase its total warehouses from 914 to an estimated 942 by the end of FY'26[19]

Core Insights - Costco presented a mixed financial performance to investors, indicating both strengths and weaknesses in its recent results [1] Financial Performance - The company reported a revenue increase, but the growth rate showed signs of slowing down compared to previous quarters [1] - Membership fees contributed significantly to the overall revenue, highlighting the importance of this segment for Costco's business model [1] Market Reaction - Investors reacted cautiously to the financial snapshot, reflecting concerns over the sustainability of growth amid changing consumer behaviors [1] - The stock price experienced fluctuations following the announcement, indicating mixed investor sentiment [1]

Group 1: Company Earnings Reports - Costco (COST) reported Q1 earnings per share (EPS) of $4.50, exceeding the estimated $4.28, with total revenue reaching $67.31 billion against an estimate of $67.07 billion, and comparable sales rose 6.4% [3][9] - Broadcom (AVGO) posted Q4 adjusted net revenue of $18.02 billion, surpassing the $17.47 billion estimate, with semiconductor solutions revenue at $11.07 billion, beating the $10.74 billion estimate, and adjusted EPS of $1.95, exceeding the $1.87 consensus [4][9] - Lululemon (LULU) announced Q3 net revenue of $2.57 billion, topping the $2.48 billion estimate, and EPS of $2.59, significantly higher than the $2.22 forecast, but projected Q4 net revenue between $3.50 billion and $3.59 billion, below the consensus estimate of $3.59 billion [5][6][9] Group 2: Market Performance - U.S. equity markets showed mixed performance, with the Dow Jones Industrial Average closing up 650.12 points (1.35%) at 48,707.87, while the Nasdaq Composite dipped 65.89 points (0.28%) to close at 23,588.26, and the S&P 500 posted a modest gain of 12.46 points (0.18%) at 6,899.14 [7][9] Group 3: Leadership Changes - Lululemon announced a significant leadership change with CEO Calvin McDonald set to step down, introducing uncertainty alongside its mixed Q4 guidance [6][9]

Core Insights - Costco Wholesale Corp reported first-quarter revenue of $67.31 billion, surpassing analyst estimates of $67.14 billion [2] - The company achieved adjusted earnings of $4.50 per share, exceeding estimates of $4.27 per share [2] Financial Performance - Net sales for the fourth quarter increased by 8.2% year-over-year [3] - Total comparable sales rose by 6.4% on a year-over-year basis [3] - Membership fees reached approximately $1.33 billion, up from $1.17 billion in the prior year's quarter [4] Operational Metrics - Costco operates 923 warehouses, including 633 in the U.S. [4] - The company ended the first quarter with approximately $16.22 billion in cash and cash equivalents [4] Regional Sales Growth - Comparable sales growth in the U.S. increased by 5.9% [6] - Comparable sales growth in Canada increased by 6.5% [6] - Comparable sales growth in Other International markets increased by 8.8% [6] Stock Performance - Costco shares were down 0.18% in after-hours trading, priced at $883.22 at publication time [5]