Capital Expenditures (CapEx)

FY 2025

$5 billion "

No specific forward guidance provided " " " " "

no current guidance

Membership Fee Income

FY 2025

Largest impact expected in Q4 FY 2025 and Q1 FY 2026 "

No specific forward guidance provided " " " " "

no current guidance

New Warehouse Openings

FY 2025

28 new warehouses (3 relocations, 25 net new buildings) "

No specific forward guidance provided " " " " "

no current guidance

SG&A Impact from Wage Increases

FY 2025

13 basis point headwind with mid-single digit YoY impact "

No specific forward guidance provided " " " " "

no current guidance

Foreign Exchange Headwinds

FY 2025

Anticipated for the remainder of the fiscal year "

No specific forward guidance provided " " " " "

no current guidance

Digital Engagement & E-commerce Growth

Recurring focus on strong comparable sales growth, enhanced digital engagement strategies (e.g., digital MVM, personalized digital communication, and robust e-commerce sales figures in Q2, Q1, and Q4) " " "

Continued robust e-commerce sales (14.8% growth and 15.7% FX‐adjusted), further technology investments such as Buy Now Pay Later, personalized recommendations and digital checkout enhancements " " " "

Consistent emphasis on digital growth with enhanced technology initiatives to drive member engagement and higher sales. " "

Membership Growth & Renewal Dynamics

Steady membership growth with consistently high renewal rates; discussions around digital sign-ups affecting renewal rates and fee increases in previous periods (Q2, Q1, Q4) " " "

Strong membership expansion with record fee income and rising household members, but slightly lower renewal rates due to a higher proportion of digital memberships and the impact of a recent membership fee increase " " "

Recurring robust growth with nuanced dynamics in renewal rates due to digital sign-ups; overall sentiment remains positive with minor headwinds. " "

Supply Chain & Operational Efficiency

Focus on inventory management, leveraging technology for improved fulfillment, and local sourcing to mitigate disruptions in Q1, Q2, and Q4 (e.g., managing port strikes and ramping up local production) " " "

Emphasis on optimizing depot operations and Costco Logistics investments, adoption of Scan and Go tests for front-end efficiency, and proactive tariff management to stabilize supply chain flows " "

Recurring commitment to operational efficiency with an added boost of technology-driven enhancements, maintaining stability amid external challenges. " "

Tariff, Inflation & Cost Pressures

Mixed sentiment: previous periods highlighted rising costs, deflationary pressures in select commodities, and proactive measures (tariff mitigation and strategic sourcing) while also noting wage impacts on SG&A " " "

Discussion of an evolving tariff environment with strategic rerouting of imports, a mix of inflationary/deflationary impacts on commodities, and notable cost pressures such as a significant LIFO charge, all managed proactively " "

Recurring challenges with cost pressures and tariffs; sentiment remains mixed but proactive mitigation strategies have been enhanced. " "

International Expansion & Market Performance

Strong global expansion with regular new warehouse openings and positive international comparable sales; emphasis on localization initiatives and balanced growth between domestic and international markets in Q1, Q2, and Q4 " " "

Robust Q3 performance with 9 new warehouses opened (including relocations and global sites) and plans for 10 additional openings in Q4, alongside solid international comparable sales and continued localization efforts " "

Recurring and accelerating expansion globally; consistent strategic emphasis on building a larger international footprint. " "

Retail Media & Alternative Revenue Streams

Earlier periods (Q1, Q2, Q4) discussed significant potential and early initiatives in retail media, with detailed campaigns and technology infrastructure being developed as an alternative revenue source " " "

Brief update in Q3 focusing on building retail media capabilities as part of a broader profitability strategy, with fewer specific metrics provided "

A recurring but evolving topic; momentum appears to be transitioning from early stage trials to a more cautious developmental phase with significant future potential. "

Store Capacity & In-Store Experience

Previous calls (Q1, Q2, Q4) outlined new warehouse openings, initiatives to decongest high-volume stores, extended gas station hours, and technology improvements for customer throughput " " "

Q3 emphasizes high-volume warehouse improvements, with targeted openings intended to alleviate congestion, new technology pilots (e.g., Scan and Go), and operational enhancements to boost in-store experience " "

Recurring focus with increased emphasis on technology and strategic warehouse location planning to further enhance the member experience. " "

Labor Cost Pressures

Throughout Q1, Q2, and Q4 discussions, rising wages and employee investment were noted as a cost pressure, partially offset by productivity gains and sales leverage " " "

Q3 reports higher SG&A due to recent employee wage increases (including the March agreement and July increases), with a controlled and offset impact through productivity improvements "

Recurring concern as labor costs continue to rise, but management remains focused on mitigating impacts with efficiency gains. "

Physical Store Technology Upgrades

Q4 focused on membership card scanners and enhanced app capabilities, with Q2 mentioning front door scanning to manage register openings; Q1 had minimal mention " " "

Q3 highlights further digital membership card usage and successful Scan and Go trials, demonstrating strong member adoption and efficiency improvements at checkout "

A recurring and increasingly positive trend, with more advanced technology upgrades enhancing the physical store experience. " "

Consumer Electronics Segment Performance

Previously, Q2 reported flat to slight growth with notable holiday excitement and Q4 emphasized promotional activities and added service components; Q1 did not provide explicit details " "

Q3 noted higher sales in April and market share gains, although with an acknowledgment of a potential cyclical slowdown as the previous year's volume and promotional effects cycle out "

A recurring topic with periodic promotional spikes; performance remains mixed but exhibits pockets of strength. "

Gasoline Volume Trends

Q4 reported modest 3% growth, while Q2 and Q1 noted fluctuating volumes driven by pricing and extended hours issues (with some periods showing negative growth due to lower prices) " " "

Q3 highlighted record gallon weeks boosted by extended gas station hours, despite negative comparable sales due to lower average prices per gallon " "

Recurring volatility with operational improvements (extended hours) offset by pricing pressures; sentiment remains cautious but adaptive. " "

Store Expansion & Infrastructure Development

Q4, Q2, and Q1 consistently emphasized steady warehouse openings domestically and internationally, with detailed projections and capital expenditure increases, highlighting balanced growth and infrastructure readiness " " "

Q3 showcased 9 newly opened warehouses with plans for 10 additional openings in Q4, reinforcing an expected annual expansion total, alongside a focus on decongesting high-volume locations for better infrastructure performance " "

A recurring and very positive growth driver; sustained investment in physical expansion continues to be a major strategic focus. " "