Company: COST
Filing Date: 2025-12-17
Form Type: 10-Q
Source: 0000909832-25-000169
Chunk: 44

Company: COSTCO WHOLESALE CORP /NEW
Filing Date: 2025-12-17
Form: 10-Q
Item: Item 8
Chunk 44
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 operations from local currencies into U.S. dollars. This impact is calculated based on the difference between the current and prior period's exchange rates. The impact of changes in gasoline prices on net sales is calculated based on the difference between the current and prior period's average price per gallon. Results expressed excluding the impacts of foreign-exchange and gasoline prices are intended as supplemental information and are not a substitute for net sales presented in accordance with U.S. GAAP and should be reviewed in conjunction with results reported in accordance with U.S. GAAP.

Our fiscal year ends on the Sunday closest to August 31. References to the first quarter of 2026 and 2025 relate to the 12-week fiscal quarters ended November 23, 2025, and November 24, 2024. Certain percentages presented are calculated using actual results prior to rounding.

Highlights for the first quarter of 2026 versus 2025 include:

•We opened eight new warehouses, including one relocation, for a total of seven net new warehouses: four in the U.S., two in our Canadian segment, and one in our Other International segment, compared to seven new warehouses, including one relocation;

•Net sales increased 8% to $65,978, driven by an increase in comparable sales and sales at 25 net new warehouses opened since the end of the first quarter of 2025;

•Membership fee revenue increased 14% to $1,329, primarily driven by membership fee increases and new member sign-ups;

•Gross margin as a percentage of net sales and excluding the impact of gasoline price deflation increased four basis points;

•SG&A expenses as a percentage of net sales and excluding the impact of gasoline price deflation increased one basis point;

•The effective tax rate was 22.5%, compared to 22.0%;

•Net income increased to $2,001, $4.50 per diluted share, compared to $1,798, $4.04 per diluted share; and

•A quarterly cash dividend of $1.30 per share was declared on October 15, 2025, and paid on November 14, 2025.

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RESULTS OF OPERATIONS

Net Sales12 Weeks EndedNovember 23,2025November 24,2024Net Sales$65,978 $60,985 Increases in net sales:U.S.8 %8 %Canada8 %6 %Other International 12 %7 %Total Company8 %8