Beginner

Costco is a big store where people buy food, clothes, and many other things. To shop at Costco, you must pay a special card called a membership. This month, Costco reported that it made a lot of money. In the last three months, Costco sold $69 billion worth of goods.

That is a very big number. Costco sold 11 percent more than it did last year at the same time. That means more people are shopping at Costco. Both in-store shopping and online shopping grew a lot.

Costco sells things in very large amounts. You can buy 24 bottles of water or a very large box of cereal at Costco. Because Costco buys so much from producers, it can sell things for a lower price than most other stores.

Costco has stores in many countries. It has more than 900 stores around the world. People love Costco because they can find good products at good prices. The company also made more money than experts expected.

membership

a card or fee that lets you use a service or shop at a special store

billion

a very large number equal to one thousand million

percent

a number out of 100 that shows how much something has changed

goods

things that people buy and sell, like food, clothing, and electronics

producer

a company or person that makes or grows something

report

an official document or statement about a company's results

expert

a person who knows a lot about a particular subject

digital

related to computers, the internet, and online services

Elementary

Costco Wholesale reported its best quarterly sales results ever on May 28, 2026. The company's net sales for the three-month period ending May 10 reached $69.15 billion, up 11.6 percent from the same time last year. The results showed that more Americans are still choosing to shop at warehouse clubs even as some retailers have struggled with slower sales.

Comparable store sales, which measure how much existing stores sold compared to the year before, grew by 9.8 percent. If gasoline prices and currency differences are removed from the calculation, comparable sales still grew a healthy 6.6 percent. Online sales were even stronger, rising 21.5 percent, showing that Costco's app and website are becoming more popular with shoppers.

The company also made a strong profit. Net income, which is the money left after all costs are paid, was $2.19 billion. Earnings per share, which is the profit divided by the number of company shares, came in at $4.93, up from $4.28 in the same quarter last year.

Costco operates on a membership model, meaning shoppers pay an annual fee to access the warehouse clubs. Members receive access to bulk products at lower prices than typical grocery or department stores. The company's loyal membership base and its ability to offer competitive prices have helped it stand out in a challenging retail environment.

quarterly

happening four times a year, once every three months

net sales

the total amount of money a company earns from selling goods, after returns

comparable store sales

a measure of how much existing stores sold compared to the same time last year

earnings per share

a company's profit divided by the number of its shares, showing how much each share earned

net income

the profit a company makes after all costs, taxes, and expenses are deducted

annual fee

a fixed payment made once a year to access a service

bulk

a very large quantity of something sold together at once

currency

the money used in a particular country, such as the dollar or euro

Intermediate

Costco Wholesale delivered a record-breaking fiscal third quarter on May 28, 2026, reporting net sales of $69.15 billion for the period ended May 10 an 11.6 percent year-over-year increase that beat analyst consensus estimates. Net income climbed to $2.19 billion, or $4.93 per diluted share, compared to $1.90 billion, or $4.28 per diluted share, in the comparable prior-year period. The results were broadly welcomed by investors, who have long regarded Costco as one of the most resilient retailers in the United States.

Comparable sales, which strip out the effect of new store openings to measure organic growth, rose 9.8 percent on an all-in basis, or 6.6 percent after excluding the impact of gasoline price fluctuations and foreign-exchange movements. These adjusted figures are considered a cleaner gauge of underlying consumer demand. Digitally-enabled comparable sales surged 21.5 percent, reflecting rapid adoption of Costco's app and website for both browsing and order pickup.

The results arrived at a time when many traditional retailers have reported softening sales, raising concerns about consumer confidence and discretionary spending. Costco's warehouse model, which relies on members paying an annual fee in exchange for access to bulk goods at sharp discounts, appears to be holding up well. The company's membership renewal rate historically exceeds 90 percent in the United States and Canada, providing a predictable revenue base that rivals' standard retail formats cannot match.

Analysts noted that the 21.5 percent digital growth rate signals that Costco's investments in its e-commerce platform and same-day delivery partnerships are beginning to pay off more meaningfully. They also flagged that comparable sales growth was broad-based across food and non-food categories, as well as across international markets, suggesting that demand strength was not solely driven by any one geography or product segment.

year-over-year

comparing data from one year with the same period in the previous year

diluted share

a measure of earnings per share that includes all potential extra shares, giving a more cautious figure

organic growth

business growth that comes from existing operations rather than acquisitions or new store openings

discretionary spending

money spent on non-essential items such as entertainment, fashion, or luxury goods

e-commerce

buying and selling goods or services online

consensus estimate

the average financial forecast made by a group of market analysts

renewal rate

the percentage of customers who choose to keep paying for a subscription or membership each year

broad-based

spread widely across many areas, categories, or groups rather than concentrated in one

Advanced

Costco Wholesale's fiscal third-quarter results for the period ended May 10, 2026, released after market hours on May 28, exceeded Wall Street expectations on every headline metric. Net sales of $69.15 billion represented an 11.6 percent year-over-year advance, while net income of $2.19 billion translated to diluted earnings per share of $4.93, a 15.2 percent improvement over the $4.28 reported in the comparable prior-year quarter. The results reaffirmed Costco's status as one of the highest-quality operators in global retail, with a consistency of execution that has historically commanded a premium valuation multiple relative to the broader sector.

Comparable sales growth of 9.8 percent on an all-in basis, moderating to 6.6 percent on a fuel- and foreign-exchange-adjusted basis, indicated robust underlying demand momentum. Digitally-enabled comparable sales, which include both e-commerce orders and click-and-collect transactions, accelerated to 21.5 percent, substantially outpacing the physical channel and reflecting the growing influence of Costco's app-driven shopping experience. Analysts at Bernstein and Barclays characterized the digital trajectory as evidence that Costco's multi-year logistics and technology investments are reaching an inflection point in consumer adoption.

The quarter's performance merits examination in the broader macroeconomic context. Several competing mass-market and mid-tier specialty retailers have reported softening comparable sales and margin compression in recent quarters, citing pressure from tariff-driven cost inflation and a rotation in consumer spending from goods to services. Costco's ability to sustain double-digit comparable growth amidst these headwinds underscores the structural advantages of the warehouse membership model: bulk procurement leverage reduces per-unit costs, predictable membership renewal income above 90 percent in North America insulates the top line from cyclical demand softness, and the treasure-hunt merchandise rotation engenders frequent store visits that rivals struggle to replicate.

Looking ahead, management's commentary on the earnings call will be closely scrutinized for signals on membership fee renewal trends and any elasticity observations from the company's most recent fee increase cycle. Institutional investors will also monitor whether the 21.5 percent digitally-enabled growth rate, if sustained, begins to shift the calculus on Costco's long-term capital expenditure profile, particularly with respect to distribution center automation and micro-fulfillment buildouts that could reduce reliance on third-party same-day delivery partnerships.

valuation multiple

a ratio used to compare a company's stock price to its earnings or sales, reflecting how highly investors value it

inflection point

a moment when a trend changes direction significantly, signaling a new growth phase or decline

margin compression

a reduction in the percentage of profit a company earns per dollar of sales