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COSTCO WHOLESALE CORPORATION - Q4 2025 Earnings Call Transcript

Public Earnings Transcripts

May 28, 2026

5/28/2026

Digital Sign-Ups Expand Costco’s Customer Base And Attract Younger Members, While Lowering Renewal Rates Due To Channel Mix And Not Demand Weakening

COSTCO WHOLESALE CORPORATION - Q4 2025 Earnings Call Transcript · Public Earnings Transcripts

Business, Finance & Industries · May 28, 2026

Costco's falling headline renewal rate is largely a channel-mix effect: digitally acquired (including a past Groupon cohort) and younger members renew slightly less on average but have expanded the member base to 81M and driven membership fee income growth, so Costco is boosting auto-renew and targeted digital engagement rather than viewing the decline as pure demand weakening.


5/28/2026

Costco Responds To Tariffs By Localizing Production, Consolidating Global Buying, And Expanding Kirkland And Domestic Sourcing To Preserve Its Price Position

COSTCO WHOLESALE CORPORATION - Q4 2025 Earnings Call Transcript · Public Earnings Transcripts

Business, Finance & Industries · May 28, 2026

Costco is not simply passing tariffs to customers but using them to localize production, consolidate global buying, and expand Kirkland/private-label and domestic sourcing—actions that have produced large cost savings (e.g., 30–40% on some consolidated buys; 40% reduction for Kirkland detergent in Asia) to protect its low-price positioning amid a tariff-driven return of inflation to nonfood categories and a related LIFO charge.


5/28/2026

Access-Based Perks and Expanded Hours Boost Sales While Supporting Upgrades Without Significantly Increasing SG&A Costs

COSTCO WHOLESALE CORPORATION - Q4 2025 Earnings Call Transcript · Public Earnings Transcripts

Business, Finance & Industries · May 28, 2026

Costco used membership and operating-hour changes—adding executive-member-only morning hours, an extra Saturday evening hour, and a $10/month Instacart credit for executive orders—communicated heavily to members, driving visible traffic changes, about a 1% lift in weekly US sales, and a meaningful increase in upgrades to Executive while keeping SG&A impact minimal.


5/28/2026

Costco Reallocates Floor Space From Seasonal Stock To High-Ticket Durable Goods In A Cautious Spending Environment

COSTCO WHOLESALE CORPORATION - Q4 2025 Earnings Call Transcript · Public Earnings Transcripts

Business, Finance & Industries · May 28, 2026

Costco reduced traditional seasonal inventory and repurposed the freed warehouse space to high-ticket, seasonally relevant durables (e.g., backyard sheds, saunas, furniture), a portfolio-management move that management says is already performing very well amid cautious holiday spending.


5/28/2026

Costco Broadens Digital Retail Metrics to Include Marketplace Fulfillment and Partner Channels, Replacing E-Commerce With Digitally Enabled Comparable Sales.

COSTCO WHOLESALE CORPORATION - Q4 2025 Earnings Call Transcript · Public Earnings Transcripts

Business, Finance & Industries · May 28, 2026

Costco replaced its narrow e‑commerce comparable‑sales metric with a broader “digitally enabled comparable sales” measure—counting all sales originating online (Instacart, Uber Eats, DoorDash, Costco Travel, business‑center delivery, etc.)—because omnichannel grocery/convenience shopping has made legacy e‑commerce definitions unrepresentative, yielding a new benchmark of >$27B digitally enabled sales in fiscal 2025 versus >$19.6B in e‑commerce and signaling investors need wider metrics to understand channel economics.