The warehouse retailer posted $95.7 billion in fourth-quarter revenue and $6.75 in earnings per share, clearing Wall Street's bar even after stripping out a one-time tariff benefit.
Costco Wholesale closed its fiscal year with a quarter that beat analyst expectations on revenue, earnings and comparable sales, capping a record year in which net sales approached $300 billion.
For the 16 weeks ended August 30, Costco reported total revenue of $95.7 billion, including $93.9 billion in net sales, up 11.2% from a year earlier, and $1.85 billion in membership fees. Net income came to $3.0 billion, or $6.75 per diluted share. Analysts had expected revenue of $94.97 billion and earnings of $6.54 per share.
Adjusting for the tariff refund
The earnings figure includes a 15 cent per share benefit from tariff refunds, a one-time item that inflates the headline beat. Remove it and Costco earned $6.60 per share, still 6 cents ahead of estimates. The beat is narrower than it first appears, but it holds.
Comparable sales
Total company comparable sales rose 9.4% in the quarter, ahead of the roughly 9% analysts had modeled. Stripping out the effects of gasoline prices and currency, comparable sales grew 6.7%.
By region:
- United States: up 10.7%, or 7.2% adjusted
- Canada: up 5.0%, or 4.6% adjusted
- Other international: up 7.0%, or 6.2% adjusted
- Digitally enabled sales: up 19.5%, or 19.8% adjusted
The e-commerce figure stands out. Online sales growing at nearly three times the pace of the adjusted company average shows Costco is taking share in a channel once seen as a weakness for a warehouse model built on foot traffic.
The full year
For the 52 weeks ended August 30, net sales reached $297.2 billion, up 10.1%, and total revenue hit $303.2 billion. Net income was $9.2 billion, or $20.76 per diluted share. Full-year comparable sales rose 8.4%, or 6.6% on an adjusted basis. Costco ended the year with 939 warehouses worldwide.
Market reaction
Shares were little changed in after-hours trading Thursday, a muted response that suggests investors had largely priced in a strong quarter and were weighing how much of the upside came from the tariff refund. Friday's regular session will offer the first full test of how the market values the report.