Dive Brief:
- Costco saw comparable-store sales excluding fuel rise 7.2% in the United States during the fourth quarter of fiscal 2026, continuing a string of quarterly improvements for that metric that began at the start of the year, the club retailer announced Thursday.
- Fresh comparable-store sales were up in the mid-single digits during Q4, led by the bakery and meat departments, CFO Gary Millerchip said Thursday during an earnings call.
- Costco has reported brisk comparable-store sales increases for each of the past several quarters as traditional supermarket chains have seen weak or even negative growth by that measure.
Dive Insight:
Grocery sales helped push Costco’s sales growth ahead in its latest quarter, although comps for the company’s food business were lower than for other categories.
Comps for food and sundries rose in the low-to-mid single digits, driven by packaged and frozen foods, Millerchip said. By contrast, Costco’s non-food categories recorded comps in the mid-to-high single digits during the quarter, which concluded on Aug. 30, according to Millerchip.
Costco saw particular success in its bakery business during Q4. The company’s in-house pastry sales, for example, more than doubled during the period, Millerchip said.
Costco’s sales momentum is rising
Millerchip noted that customers have shown increased interest in protein-rich foods like meat snacks, sardines, canned tuna and chicken. Goods that are high in fiber, like edamame and granola snacks, are also playing well with shoppers, he said.
In addition, Millerchip said that Costco reduced prices on certain private label items during Q4, including walnuts, Colombian whole bean coffee and black pepper.
“Our goal is to be the first to lower prices where we see opportunities to do so,” he said.
Pharmacy sales rose by nearly 20% in Q4, driven by e-commerce, President and CEO Ron Varchris said during the earnings call. Digital programs like Costco’s pay-ahead service and pickup lockers helped offset pressure stemming from reductions in the amount the federal government pays for certain medications under Medicare, Vachris added.
Costco’s fuel operations also helped drive its results. Comparable-store sales for that portion of its business were up by more than 30%, as higher prices and record volumes propelled sales, Millerchip said.
The percentage of the retailer’s U.S. members that bought gas at its fuel stations reached an all-time high in fiscal 2026, according to Vachris.
Net sales for the quarter were up 11.2% year over year, to $93.9 billion, while net income rose almost 15%, to just under $3 billion. E-commerce sales, including transactions handled by third-party providers, rose more than 20% to over $33 billion, Vachris said.
For all of fiscal 2026, Costco saw its U.S. comparable-store sales excluding fuel rise 6.6%. Net sales for the year were up 10.1%, to $297.2 billion.
Costco added 10 retail locations to its U.S. fleet during Q4. The company currently runs 939 stores worldwide, 647 of which are in the U.S.
