COST.US (COST.US) Q4 revenue and profit exceeded expectations, and paid membership growth fell short of expectations

The Zhitong Finance App learned that after the US stock market on Thursday, COST.US (COST.US) announced the results for the fourth fiscal quarter of the 2026 fiscal year ending August 30. According to the data, the total revenue of Market Opener Q4 increased 11% year-on-year to US$95.72 billion, better than market expectations; adjusted earnings per share were 6.57 US dollars, which was also better than market expectations, and tariff refunds contributed 15 cents per share.

The data also showed that in the fourth fiscal quarter, membership fee revenue increased 7% to US$1.85 billion, slightly higher than market expectations. The increase in the number of paid members over the same period was lower than expected. The company's stock price did not change much during after-hours trading.

This large-scale warehousing retailer, which operates more than 900 stores around the world, has gained an advantage with competitive prices, large packages, and products that are hard to find anywhere else. Its limited selection model — each category focuses on only a few choices — allows it to respond flexibly and efficiently to tariffs and other macroeconomic challenges.

In a conference call with analysts on Thursday, executives said that the market opener's gasoline and travel business performed well, while household goods, small electronics and beauty products also led to sales growth. Adjusted same-store sales increased 6.7% for the quarter, better than expected.

Executives said that the company received a tariff refund of US$184 million in the previous quarter, and received roughly the same amount in the current quarter. The company mainly uses these refund proceeds to reduce the prices of products such as meat, agricultural products, beverages, and household goods.

Chief Financial Officer Gary Millerchip said food inflation has remained at a similar level in recent months. Prices of some non-food products have risen due to the rising cost of memory chips and the rise in oil prices due to the Middle East conflict.

According to the company, young consumers continue to join market openers, and the number of members under 40 has increased by nearly 60% since the pandemic. This group currently accounts for more than 25% of market openers and shoppers. CEO Ron Vaklis said they initially spent less, but will eventually accelerate growth.

In recent years, market openers have sought to expand their digital business footprint through partnerships with third-party delivery companies such as Instacart, DoorDash, and Uber Technologies. The company's e-commerce segment is growing faster than other sectors and helps attract younger shoppers. On a comparable scale, digital sales increased by nearly 20%.

Consumer confidence has continued to weaken in recent months due to high oil prices and inflation. This has sparked increasing competition, and companies are trying to attract price-sensitive shoppers with the right mix of products. Walmart, Kroger, and Albertsson are using tariff refunds to fund price reduction initiatives.