Costco reported solid fourth quarter results, with total revenue slightly above expectations at $86.16 billion. Same store sales grew 6.4%, beating forecasts, though US growth came in just below estimates at 6%. Canada led with 8.3% growth, while international markets matched expectations at 7.2%.
Despite the beat, Costco shares fell over 2%, reflecting investor concerns around consumer spending, tariffs, and rising competition especially from Amazon and Sam’s Club. For the full fiscal year, Costco posted $275.24 billion in revenue, with 7.6% same store sales growth, slightly ahead of forecasts.
Costco continues to focus on value, with everyday staples like the $1.50 hot dog combo and rotisserie chicken remaining key drivers of customer loyalty. Over the year, the company sold 245 million hot dog combos and 157 million chickens. To manage tariff impacts, Costco shifted sourcing strategies, increased domestic purchases, and adjusted its product mix. The company also expanded into new categories like in home saunas and furniture, while being selective with holiday items.
Membership income rose 14%, and cardholders increased by 6.1%. Same day delivery partnerships with Uber Eats and Instacart are growing steadily, and online sales rose 15% last quarter. Costco remains focused on value, efficiency, and adapting to changing consumer behavior while keeping a eye on new competition.