Costco Wholesale Corporation (COST) Earnings Call Transcript & Summary

September 2, 2026

NASDAQ US Consumer Staples Consumer Staples Distribution and Retail trading_statement 5 min

What were the key takeaways from Costco Wholesale Corporation's September 2, 2026 earnings call?

In the August 2026 retail month, Costco Wholesale Corporation reported net sales of $23.70 billion, reflecting a robust increase of 9.9% year-over-year compared to $21.56 billion. Comparable sales growth was strong at 8.4%, although impacted by a shift in Labor Day timing, which reduced sales by approximately 75 basis points. The company will announce its Q4 and full fiscal year 2026 earnings on September 24, 2026, which could provide further insights into future performance and guidance adjustments.

What topics did Costco Wholesale Corporation cover?

  • Strong Comparable Sales Growth: Costco's total comparable sales for August increased by 8.4%, with U.S. comparable sales at 9.0%. Management noted that 'gas price inflation positively impacted total reported comp sales by approximately 2.9%.'
  • Impact of Labor Day Shift: The timing of Labor Day negatively affected sales by nearly 75 basis points, with management stating, 'Labor Day in the U.S. and Canada will occur 1 week later this year.' This shift may have dampened overall sales performance.
  • Digital Sales Performance: Digitally-enabled comparable sales surged by 17.9%, indicating strong online demand. This performance highlights Costco's successful adaptation to e-commerce trends.
  • Regional Sales Variability: Sales performance varied by region, with the Southeast, San Diego, and Midwest showing the strongest comparable sales. Management highlighted, 'the strongest results in Spain, China and Korea' for international markets.
  • Merchandising Highlights: Food and sundries showed low single-digit growth, while gas sales increased significantly, up low 30s year-over-year. Management noted, 'Gas was up low 30s driven by price per gallon changes year-over-year.'

What were Costco Wholesale Corporation's September 2, 2026 results?

  • Net Sales: $23.70 billion (vs $21.56 billion last year, +9.9% YoY)
  • Comparable Sales: 8.4% (vs 7.5% est, impacted by Labor Day shift)
  • U.S. Comparable Sales: 9.0% (vs 8.0% est)
  • Digital Sales Growth: 17.9% (compared to previous year)
  • Traffic Growth: 2.5% (worldwide increase)
  • Gas Sales Growth: low 30s% (year-over-year increase)

Costco's strong sales performance in August, particularly in digital channels and gas sales, bodes well for the stock. However, the impact of the Labor Day shift raises questions about future comparable sales growth. Investors should watch for guidance updates during the upcoming earnings release, as well as trends in consumer traffic and spending.

Earnings Call Speaker Segments

Andrew Yoon

executive
#1

Hello. I'm Andrew Yoon, Director of Finance and Investor Relations, and I'll review our sales results for the 4-week retail month of August, which started on Monday, August 3, and ended on Sunday, August 30. This period is compared to the 4 weeks that began last year on Monday, August 4, and ended on Sunday, August 31. This recording will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that may cause actual events, results and/or performance to differ materially from those indicated by such statements. The risks and uncertainties include, but are not limited to, those outlined in this recording in today's sales release as well as other risks identified from time to time in the company's public statements and reports filed with the SEC. Forward-looking statements speak only as of the date they are made, and the company does not undertake to update them, except as required by law. Comparable sales and comparable sales, excluding all gasoline sales and the impact of foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with U.S. GAAP. As reported in our release, net sales for the month came in at $23.70 billion, an increase of 9.9% from $21.56 billion last year. Reported comparable sales for the month were as follows: U.S., 9.0%; Canada, 4.0%; Other International, 9.5%; total company, 8.4%; digitally-enabled 17.9%. Comparable sales for the month, excluding the impacts from changes in gasoline prices and foreign exchange were as follows: U.S., 5.6%; Canada, 2.8%; Other International, 6.8%; total company, 5.4%; digitally-enabled, 17.9%. Labor Day in the U.S. and Canada will occur 1 week later this year. The shift negatively impacted our August total and comparable sales by a little less than 75 basis points. Total company comparable sales for the month, excluding all gas sales and the impact of foreign exchange was approximately 5.3%. Our comp traffic or frequency for the month was up 2.5% worldwide and 2.3% in the U.S. Foreign currencies year-over-year relative to the U.S. dollar impacted total and comparable sales as follows: Canada negatively by approximately 0.8%, Other International positively by approximately 1.2% and the total company positively by approximately 0.1%. Gas price inflation positively impacted total reported comp sales by approximately 2.9%. The average worldwide selling price per gallon was up 25.8% versus last year. Worldwide, the average transaction was up 5.7%, which includes the impacts from gas inflation and FX. Excluding gas inflation and FX, average transaction was up 2.8%. In terms of regional and merchandising categories, the general highlights were as follows: U.S. regions with the strongest comparable sales were the Southeast, San Diego and Midwest. Other international and local currencies, we saw the strongest results in Spain, China and Korea. The negative impact of cannibalization was approximately 50 basis points. Moving to merchandising highlights. The following comparable sales results by category for the month exclude the impact of foreign exchange. Foods and sundries were positive low single digits. Better-performing departments included food, frozen foods and sundries. Fresh foods was up mid-single digits. Better-performing departments included bakery and meat. Nonfoods were positive mid-single digits. Better-performing departments included home furnishing, sporting goods and jewelry. Ancillary business sales were up high 20s. Gas, pharmacy and hearing aids were the top performers. Gas was up low 30s driven by price per gallon changes year-over-year. Looking ahead, the September reporting period will include the 5 weeks beginning August 31 and ending October 4, 2026, compared to the 5 weeks beginning September 1 and ending October 5, 2025. Prior to September sales, we'll be releasing our Q4 and full year fiscal 2026 earnings on September 24. Earnings will be announced after market close with a conference call to follow at 2:00 p.m. Pacific Time. The call can be streamed via our Investor Relations website. If you have any Investor Relations questions, please call Josh Dahmen at (425) 313-8254, Bryan Starnes at (425) 427-7403 or me at (425) 313-6305. This recording will be available until 4:00 p.m. Pacific Time, Wednesday, September 9.

This call discussed

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