Story Stocks®
- Comparable sales (ex-gas, ex-FX) increased 6.4%, consistent with the December 3 preannouncement, as traffic rose 3.1% and average ticket increased 3.2% worldwide.
- Digitally enabled comparable sales surged 20.5%, supported by 24% website traffic growth, 48% app traffic growth, and rapid expansion in same-day delivery via Instacart (CART), Uber (UBER), and DoorDash (DASH) -- each outpacing overall digital sales.
- Non-food standouts included pharmacy, jewelry, tires, small electronics, and apparel, all posting double-digit growth. Fresh foods were also strong, led by double-digit gains in meat, while produce performed well.
- Membership fee income jumped 14% to $1.33 bln, aided by last year’s U.S./Canada fee increase, increased Executive upgrades, and continued base growth. COST ended Q1 with 81.4 mln paid members (+5.2% yr/yr) and a 92.2% renewal rate in the U.S./Canada.
- Black Friday was a high point, generating over $250 mln in non-food e-commerce orders, part of a broader pattern of consumers seeking value in groceries, household essentials, and holiday gifting.
Briefing.com Analyst Insight:
COST’s 1Q26 results highlight impressive consistency, with comps holding near 6-7% despite tariff noise, port disruptions, and uneven monthly trends. Strength in membership income, up 14%, remains central to the COST story, supported by growing Executive penetration and expanding digital engagement. The surge in digitally enabled sales and record-setting Black Friday performance show that recent investments in personalization, app upgrades, and same-day delivery are paying off. Holiday momentum appears strong, backed by healthy inventory levels and solid seasonal demand across food and non-food categories. While renewal rates face mild pressure due to younger, digitally signed-up members, COST's value proposition and traffic engine remain exceptionally resilient heading into the peak holiday period.
