Costco Q4 Comps Jump 6.7% as Fresh Food Fuels Growth

Costco Wholesale grew comparable-store sales 6.7% in its fourth quarter, excluding gas and foreign exchange, while traditional supermarket chains reported lackluster same-store results. U.S. comps excluding gas rose 7.2%.

The Issaquah, Wash.-based membership club gained in both unit volume and dollar sales, and mid-single-digit comps in fresh foods bolstered the quarter. The company filed its results September 25, 2026.

Costco continues to appeal both to members seeking value pricing on everyday items and to those willing to splurge on discretionary and indulgent purchases, said Gary Millerchip, executive VP and chief financial officer, on a conference call with analysts.

"We're able to deliver on both of those expectations of our members, and we're seeing growth in both ends of that spectrum," Millerchip said.

Bakery and Meat Lead Fresh-Food Growth

The bakery and meat departments led all fresh-food categories in the fourth quarter. Sales of in-house pastries rose 100% in the quarter as the company added new and indulgent items, Millerchip said.

Comp-store sales in food and sundries climbed in the low- to mid-single digits, led by packaged foods, sundries and frozen foods.

"We continue to see a shift in member shopping habits towards healthier packaged foods and protein items such as meat snacks, sardines, canned tuna and chicken," Millerchip said. High-fiber options such as edamame and granola snacks also posted strong growth in the quarter.

Pharmacy and health and beauty were standout categories as well. Aggressive pricing on GLP-1 drugs in particular drove pharmacy sales growth, the company said.

Tariff refunds added another tailwind. Costco booked $184 million in tariff refunds in Q4 and invested most of that money in maintaining aggressive pricing. The company expects a similar level of refunds in the first quarter of fiscal 2027, which began August 31.

Costco Next Marketplace Shut Down

The retailer also announced it will discontinue Costco Next, its third-party digital marketplace, and fold it into its traditional ecommerce platform.

"As our digital capabilities mature, we believe that integrating the most popular items and brands from Costco Next more seamlessly into the Costco app and website provides a better member experience and will increase sales," Millerchip said.

Digital is already a growth engine for the club. Comparable digital sales rose 19.8% for the quarter and 20.7% for the full year, and Q4 website and app traffic increased 30%. Pharmacy, home furnishings, small electrics, hardware, housewares, domestics and health and beauty all ranked as top digital performers.

Bottom Line and Expansion Plans

Fourth-quarter net income rose 14.8% year over year to nearly $3 billion. Full-year net income climbed 13.9% to about $8.1 billion. Total Q4 revenues, including membership fees, grew 11.1% to $95.72 billion, and full-year revenues increased 10.1% to $303.15 billion.

Costco operates 939 warehouses, including 647 in the U.S. The company plans to open 33 stores in fiscal 2027, five of them relocations, as it pushes further into a grocery market where conventional competitors continue to lose share.