Costco Wholesale reported a higher profit and rising sales in its fiscal fourth quarter, citing continued spending from consumers undeterred by sticky inflation.
"Our members continue to show resilience in their spending, and they show a willingness to spend in discretionary areas where they're seeing exciting new items at great value," Chief Financial Officer Gary Millerchip told investors on a Thursday call.
Chief Executive Ron Vachris added that a run-up in gas prices stemming from the war in Iran has boosted the value proposition of Costco's gas offerings.
"Our gas business has had a record year, driven by members seeking value in Costco's top tier gasoline in the face of rising prices," Vachris said on the call. "In fiscal year '26, we saw the penetration of U.S. member households that purchased gas reach an all time high."
Costco has also reinvested some of the $184 million in tariff refunds received during the fourth quarter into price reductions on items including everyday staples, produce, meat, beverages, and certain non-food items like home furnishings, Vachris said.
Millerchip said the initial refunds represent just more than a third of the total refunds Costco expects to receive in the current first quarter. The company plans to continue reinvesting a majority of those refunds, he said.
The company logged a profit of $3 billion, or $6.75 a share, in the quarter ended Aug. 30. That compares with a profit of $2.61 billion, or $5.87 a share, a year earlier.
Revenue grew to $95.72 billion, up from $86.16 billion a year prior.
Analysts polled by FactSet were expecting a profit of $6.54 a share on $94.97 billion in revenue.
Comparable sales rose 9.4% in the quarter, including 11% growth in the U.S., 5% growth in Canada, and 7% growth in other international markets. Digitally-enabled comparable sales were up nearly 20%.
Excluding the effects of gas prices and foreign-exchange rates, adjusted same-store sales were up 6.7% across the company.
Membership fees were $1.85 billion, up from $1.72 billion. Net sales, which constitute most of Costco's top line, grew to $93.87 billion from $84.43 billion.
The company opened 28 new warehouses during the full fiscal year, including three relocations. It expects to open another 33 warehouses in fiscal 2027, including five relocations. Costco is targeting opening 30 net new warehouses a year.
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