During fiscal 2025, which ended August 31, Costco reported net sales of $270 billion, cementing its position as a global retail powerhouse. Over the past six fiscal years (2020–2025), the company achieved positive same-store sales growth despite challenges such as the pandemic, supply-chain bottlenecks, record inflation and rising interest rates. The membership model remains a core strength, with 81.4 million members generating $1.3 billion in fee revenue in Q1 of fiscal 2026 and renewal rates of 92.2 percent in the U.S. and Canada (89.7 percent worldwide). Expansion continues at pace, with 921 warehouses in operation and 28 net new openings planned for fiscal 2026, contributing an average of $192 million in annualized net sales per new location—28 percent higher than stores opened in fiscal 2023.

Costco’s share price has climbed more than 13 percent year-to-date, outperforming the S&P 500 by over ten percentage points. Comparable sales rose 8.2 percent in Q1 of fiscal 2026 (6.4 percent on an adjusted basis) while digitally enabled comparable sales jumped 20.5 percent, underscoring the retailer’s ability to grow both in-store and online. Membership fee income expanded 14 percent year-over-year, driven in part by fee increases and upgrades to the higher-tier Executive program. Despite this momentum, the stock trades at a trailing P/E of roughly 53 and a forward P/E near 49, implying limited margin for error and prompting some investors to await a pullback before initiating new positions.

Costco is defending a class-action lawsuit filed in the U.S. District Court for the Southern District of California alleging that its Kirkland Signature rotisserie chicken is falsely marketed as containing “no preservatives” despite the inclusion of sodium phosphate and carrageenan. Filed on behalf of two California consumers, the suit claims that in-store signage and website language create a misleading impression and that disclosures in small print fail to clarify the functional role of these additives. The outcome of this litigation could affect brand reputation, legal expenses and potential settlement costs, representing a notable risk factor for investors evaluating the company’s long-term outlook.