COSTCO WHOLESALE CORP

A quarterly SEC filing is unavailable for this period.

• Costco opened four new warehouses in fiscal Q3 2026 (three U.S., one Canada) and 16 in the first 36 weeks (including two relocations), bringing the global network to 928 locations; it plans 13 additional openings (including one relocation) in the remainder of fiscal 2026 and intends to spend approximately $6,500 million on full-year capital expenditures to fund new stores, remodels, depot-network expansion, and digitally-enabled business development.
• Comparable sales rose 10% in the quarter (7% excluding foreign-currency and gasoline-price effects), driven by roughly a 7% increase in average ticket and 2% in shopping frequency; the company changed its e-commerce comparable-sales metric to 'digitally-enabled comparable sales' this fiscal year, which grew 21% in Q3 (21% excluding FX). Warehouse ancillary and other-businesses sales surged 29%, led by gasoline (volume up ~10%, average price up 20%) and pharmacy.
• Total paid members reached 82.9 million and cardholders 148.5 million at quarter-end; worldwide renewal rate was 89.7% (92.2% in the U.S. and Canada). Membership fee revenue increased 11% to $1,373 million, with the September 2024 U.S./Canada fee increase accounting for approximately 25% of fee-income growth in the quarter, alongside new sign-ups and Executive Membership upgrades.
• New legal matters filed or advanced during the quarter include four March 2026 class actions seeking refunds of IEEPA tariffs passed through to member prices, a March 2026 amended complaint adding a co-plaintiff in the Kirkland Signature tequila '100% de Agave' labeling suit, and two January/March 2026 Washington-state employee class actions alleging meal-period and wage-statement violations; the Birdwell privacy-tracker case was dismissed with prejudice in March 2026.
• A quarterly cash dividend of $1.47 per share (13% above the $1.30 paid in Q3 2025) was declared in April and paid in May 2026; the company repurchased 184,000 shares in the quarter at an average price of $997.47, leaving $1,359 million available under its $4,000 million buyback authorization expiring January 2027.

• Warehouse expansion: Opened four new warehouses in Q2 (including one relocation), adding three net new locations (one U.S., two Canada), bringing the global fleet to 924 warehouses. Twelve new warehouses (including two relocations) were opened in the first half, and the company plans to open 21 additional new warehouses (including three relocations) in the remainder of fiscal 2026.
• Membership and fee revenue: Total paid members grew to 82.1 million and total cardholders to 147.2 million at quarter-end. Membership fee revenue rose 14% to $1,355 million, driven by new sign-ups and the U.S./Canada fee increase effective September 2024 (which accounted for roughly 35% of Q2 fee-income growth). Renewal rates were 92.1% in the U.S. and Canada and 89.7% worldwide, with the rate modestly pressured by a higher share of digitally sold memberships entering the trailing calculation.
• Comparable and digitally-enabled sales: Total net sales increased 9% to $68,242 million. Company-wide comparable sales grew 7% (ex-fx and gasoline), with Other International comps up 13% versus 2% a year ago. Digitally-enabled comparable sales—now the company's e-commerce comp metric—increased 23% (22% ex-fx). Average ticket rose approximately 4% and shopping frequency approximately 3%.
• Capital expenditure plan: The company spent $2,815 million on capital expenditures in the first half of fiscal 2026 and stated its current intention to spend approximately $6,500 million for the full fiscal year, directed at new warehouse openings, existing-location remodels, expansion of its depot/distribution network, and further development of digitally-enabled businesses.
• Gross margin and dividend: Gross margin percentage rose 17 basis points to 11.02% (up 11 bps excluding gasoline price deflation); core-merchandise margin as a percentage of core sales improved 22 bps across all categories. A non-recurring legal settlement added 5 bps and a LIFO charge subtracted 4 bps. The quarterly cash dividend was raised to $1.30 per share (from $1.16 in the prior-year quarter) and paid on February 13, 2026.

• Completed 8 new warehouse openings (including 1 relocation) for 7 net new stores in Q1—four in the U.S., two in Canada, one in Other International—bringing the worldwide network to 921 warehouses; the company plans 25 additional new warehouses (including four relocations) in the remainder of fiscal 2026.
• Total-company comparable sales grew 6% (vs. 5% a year earlier), driven by approximately 3% increases in both shopping frequency and average ticket; the company changed its e-commerce comp metric to 'digitally-enabled comparable sales' starting this quarter, which rose 21% with or without foreign-currency impacts.
• Total paid members reached 81.4 million (from 77.4 million a year prior) and total cardholders 145.9 million; renewal rates were 92.2% in the U.S./Canada and 89.7% worldwide, with management noting a negative impact from a higher share of memberships sold online entering the trailing renewal calculation. Membership fee revenue increased 14% to $1,329 million, with prior-year U.S./Canada fee increases accounting for slightly less than half of the growth.
• Capital expenditures totaled $1,526 million in Q1 (vs. $1,264 million in Q1 2025); the company stated its current intention to spend approximately $6,500 million for fiscal 2026, to be financed from operating cash flow and existing cash/investment balances.
• Gross margin percentage rose 4 basis points to 11.32%, helped by 7 bps from warehouse ancillary and other businesses (pharmacy and hearing aids) and offset by 3 bps from a smaller LIFO benefit; core merchandise gross margin was flat as a share of total net sales but increased 30 bps when expressed as a percentage of core merchandise sales. SG&A as a percentage of net sales ticked up 1 bp to 9.60%, weighed by a 4-bp charge related to a prior-year tax assessment.