Costco Q4 profit up helped by one-time IEEPA tariff refund

Overview

• U.S. warehouse retailer's fiscal Q4 net sales rose 11.2% year-over-year

• Fiscal Q4 adjusted comparable sales grew 6.7%

• Q4 diluted EPS increased, aided by a one-time tariff refund

Outlook

• Company did not provide specific financial guidance or outlook for the upcoming quarter or year

Result Drivers

• DIGITAL SALES - Digitally-enabled sales grew 19.5% in Q4, outpacing total company sales growth

• TARIFF REFUND - Q4 net income and EPS benefited from a one-time IEEPA tariff refund, partially offset by reinvestment in member value

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 25 "strong buy" or "buy", 13 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the discount stores peer group is "buy"

• Wall Street's median 12-month price target for Costco Wholesale Corp is $1,100.00, about 21.6% above its September 23 closing price of $904.70

• The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 43 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)